Small Business Administration |
The Small Business Administration will receive $730 million from the Recovery Act. Some programs that will receive funding are:
More information about Small Business Administration plans can be found by visiting www.sba.gov/recovery. Local SBA Office:
SBA Programs Receiving Funding Surety Bond Guarantee Program: $15 million Description: "The U.S. Small Business Administration (SBA) can guarantee bonds for contracts covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor's ability to obtain bonding and greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract." (from SBA's SURETY BOND GUARANTEE PROGRAM) Type of funding: Competition How to apply: Click here to learn how to apply for a Surety Bond Guarantee through the SBA.
Description: This provision calls for "temporarily eliminating fees on SBA-backed loans and raising SBA's guarantee percentage on some loans to 90 percent. (from www.sba.gov/recovery) Type of funding: Automatic How to apply: The elimination of fees, announced on March 16, will remain in effect until the end of the calendar year or until the funding is exhausted. The elimination of fees is retroactive to the day the Recovery Act was signed into law.
Description: "The Microloan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level." (from Finance Start-Up) Type of funding: Competition How to apply: SBA Microloans are made by local intermediaries. Click here to find the lender in your area.
Description: The Recovery Act creates a new loan program to provide deferred-payment loans of up to $35,000 to viable small businesses that need the money to make payments on an existing, qualifying loan for up to six months. These loans will be 100 percent guaranteed by SBA. Type of funding: Loans How to apply: For more information on these loans, please visit www.sba.gov/recovery. |