The Recovery Act invested millions in new projects that are improving our infrastructue, repairing homes, and much more. But it also provided millions in direct benefits for families, students, businesses, investors, and more including more than $288 million in various forms of tax relief. Guidance on how to access each of those benefits is below.
Recovery Act Provisions:
- $730 million for the SBA to expand small business loan programs
- Temporary elimination of fees on SBA-backed loans
- New loan programs established by the Recovery Act
- $30 million for expanding the SBA Microloan program
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The Small Business Administration is aggressively supporting small businesses as they recover from the economic recession. As of January 2010, the SBA claimed to have used its allocations to support more than $19 billion in Recovery Act-funded loans.
To find opportunities:
1) Choose the program that is right for your small business
Most SBA programs are directed at helping small businesses by supporting the financial institutions that lend to small businesses. The four main loan programs involved in the SBA Recovery Act initiatives are the 7(a) Loan Program, Micro-Loan Program, CDC/504 Loan Program, and the brand new ARC Loan Program.
2) Gather materials and prepare an application for SBA-backed loans
Each of these loan programs are administered by private lenders—the SBA’s role is to provide favorable conditions and backing to encourage those lenders to make credit available to small businesses. That means that applications and proposals must go directly to lenders. Small businesses looking to access SBA-backed loans can start by viewing this SBA training module. Next, consult this list of required documents and procedures. Small businesses should also be aware of the credit factors that will be analyzed as part of any loan application:
The loan application process is not a quick or easy one, so entrepreneurs can consult one of the six SBA District Offices in Texas for assistance.
3) Talk to your lender
Completed proposals should be taken to lenders for consideration. Keep in mind that financial institutions will not necessarily participate in each SBA program. For example, the 504 Micro-Loan programs are targeted at community development institutions.
