Government Sponsored Small Business Loans

Gender Race And Business Recovery

Start-ups that Guzman said may be in particular need of help are those run by female and minority founders.

“What we found, especially during Covid, is that women and people of color are oftentimes faced with more intense challenges and trying to access those resources to either position their businesses for recovery or start up,” Guzman said. “We need to make sure that we’re meeting businesses where they are, taking into account the challenges that they’ve had to overcome over the past year and a half, and be ready with programs that can serve them today.”

She said creating a network of community navigators, funded through the American Rescue Plan, will help connect local businesses to SBA programs. Adopting new technology to help handle the massive change in scale for the agency from $40 billion to $1 trillion will also be a big part of making the SBA run more effectively, she said.

Fedex Small Business Grant

Each year, FedEx awards ten business owners grants and other prizes to help them manage the costs associated with growth and development.

Grant totals vary from year to year, but in 2019, FedEx awarded one $50,000 prize, one $30,000 prize, and eight $15,000 prizes. Each recipient also received between $1,000 and $7,500 in FedEx print and business services.

Only United States-based, for-profit businesses who have been in business for at least six months and have fewer than 99 employees are eligible for this grant.

The 2019 award season has already come to a close however, FedEx will be opening the application up for the 2020 award season in early 2020 typically February.

Shuttered Venue Operators Grant

With so many live venues forced to close or scale back capacity due to pandemic restrictions, operators of venues like movie theaters, museums, zoos and live theaters may qualify for the Shuttered Venue Operators Grant. Small businesses may be eligible for up to $10 million or 45% of their 2019 revenue. To qualify, businesses must prove they were in operation as of Feb. 29, 2020.

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The Labor Shortage Covid And Small Business

SBA financial relief and help accessing capital have helped small businesses facing a difficult labor market as they attempt to get back to full speed, but Guzman said many of the conversations she is having with small businesses owners show that Covid concerns remain a big part of the labor shortage, not simply competition over wages and benefits.

“They’re letting me know that there’s still concerns about Covid. And especially with the Delta variant,” she said.

The National Federation of Independent Businesses is seeing the labor shortage translate into lost sales among it member companies, said Holly Wade, NFIB executive director of research, citing data from its latest Covid survey. Also speaking at CNBC Small Business Playbook, she said the combination of continued competition against larger firms in the hiring market and the rise of delta variant means small businesses will continue to be challenged to keep sales up. “The lost sales that they have seen, we may see it again,” Wade said.

Through the American Rescue Plan, businesses are able to give their employees time off to get vaccinated and recover and access a tax credit especially built into the federal Covid relief plan for them. “That, above all, is what they’re concerned with. They want their main streets and their business centers to return to normal. And that means we have to fight the pandemic,” Guzman said.

Pradhan Mantri Mudra Yojana

Features:

• The scheme will extend loans to activities that create employment and generate income in the areas of services, manufacturing, retail, and agriculture.
• No collateral or security need to be provided to avail the Mudra loan.
• Three types of loans can be availed under Mudra for different stages of the business, namely, Shishu, Kishor, and Tarun.
• The loans under the Mudra Yojana will be extended by public sector banks, private sector banks, cooperative banks, Regional Rural Banks , foreign banks, Non-Banking Financial Companies , and Micro Finance Institutions .

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The Best Options For Government Business Loans

In a nutshell, The SBA 7 Loans, 504/CDC Loans, Paycheck Protection Program Loans, and SBA Microloans complete the list of the four most crucial government loan programs for small businesses. Therefore, one of these options will be your best option when looking for an ideal source of funding for your business. However, depending on your specific needs, you can leverage other government loan programs such as the Community Advantage Program, SBA disaster loan program, SBA microloan program, and many others. Lets take a look at some of them:

Msme Loan In 59 Minutes

Features:

• You can avail a loan of up to Rs5 crore where the amount will be deposited to your account in less than 60 minutes.
• Minimum documents required. You only have to upload the scanned versions of the required documents and upload it online for you to avail the loan.
• You can avail a loan between Rs.1 lakh and Rs.5 crore under this loan scheme. Since you have the option of availing this loan from any of the lenders, the rate of interest levied may differ. The rate of interest however starts at 8.5%.

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Us Small Business Association

The U.S. Small Business Association aims to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall U.S. economy.

Funding Opportunities

SBA offers a variety of loan programs for very specific purposes. Some areas include general small business loans, a microloan program, real estate and equipment loans, disaster loans, and other loan programs.

Clearinghouses and Technical Assistance

• Young Entrepreneurs provides many resources aimed toward Millenial entrepreneurs including information on how to start a business, developing a business plan, local assistance tools, and small business tax forms and publications.
• Opportunities for Young Entrepreneurs is provided through the Office of Entrepreneurship Education, offers guidance in how to start a business as a young person.
• The Young Entrepreneurs Essential Guide to Starting a Business is a course to help with the basics of creating and financing a successful business.

Small Business Innovation Research And Small Business Technology Transfer Programs

The SBIR and STTR programs are some of the best government grants available to for-profit small businesses innovating in science and technology. They are highly competitive and incentivize small businesses to conduct research and development, in hopes to eventually commercialize their product.

In addition to funding, these programs also offer opportunities for small businesses to work with nonprofit organizations. To be eligible, you must operate a U.S.-based small business that is more than 50% U.S.-citizen owned and has less than 500 employees.

These programs are broken down into three phases:

• Phase I: Award is between $50,000 and $250,000 for six months or one year . The objective is to determine technical merit, commercial potential and feasibility.
• Phase II: Award is generally $750,000 for two years . The objective is to continue research and development efforts from Phase I.
• Phase III: Funding is not provided by SBIR or STTR programs. The objective is to pursue commercialization.

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Small Business Development Centers

Approximately 900 Small Business Development Center sites are funded through a combination of state and SBA support in the form of matching grants. Typically, SBDCs are co-located at community colleges, state universities, and/or other entrepreneurial hubs. Cole Browne leads the SBA in purchasing of new Development Center sites.

Government Loan Schemes For Small Scale Businesses

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National Small Industries Corporation Subsidy

The NSIC is a Government enterprise under the MSMEs, and it is ISO certified. One of its primary functions is to aid the growth of MSMEs by providing services including finance, technology, market and other services across the country. The NSIC has initiated two schemes in order to promote the growth of MSMEs, which are:

• The scheme supports in development any business by devising schemes such as Consortia and Tender Marketing. Such a scheme is crucial as the MSMEs must be aided in order for them to grow in the current competitive market.
• The NSIC provides for financial aid to procure raw materials, for activities in relation to marketing and for financing with banks through syndication to MSMEs.

The benefit of this scheme is that it offers the small-scale industries access to tenders without them having to bear any costs, and the MSMEs also do not have to pay the security deposits for availing financial aid under this scheme.

If Approved Only Pay When You Draw Funds No Application Fees Subscription Fees Or Inactivity Fees Rates Start At 466% For A 12

A line of credit is a pre-agreed amount of money that you can access when you need it. Many lines of credit are revolving, meaning that with each weekly repayment, the amount you repaid becomes available again. Interest is only paid on the amount of used. It can provide a valuable safety net during an unexpected event, or it can give you the means to take advantage of a surprise growth opportunity.

A business credit card is a flexible form of payment similar to a line of credit, however, not all purchases or expenses will accept payment through a business credit card. This may include your property lease, payroll, and invoices from some vendors. Unlike a business credit card, you can typically use a business line of credit for these expenses.

Apply for Fundbox Credit

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How To Apply For Government Small Business Loans

Because you will be working with a bank or other lender , SBA loans typically require several documentations. The application process can take a lot of time, and from the initial stage, the loans take 30 days or over before you receive funding. The application procedures and requirements may vary depending on your loan program and lender, but generally, you need to provide the following details:

Other mandatory documentation includes:

• Personal and business tax returns
• Financial statements
• Legal documents

Office Of Hearings And Appeals

The Office of Hearings and Appeals is an independent office within the SBA established in 1983 to provide an independent, quasi-judicial appeal against certain SBA program decisions.

OHA is able to hear appeals regarding:

• Size determinations,
• Contracting officer designations of North American Industry Classification System codes onfederal contracts,
• Eligibility determinations for Service-Disabled Veteran-Owned Small Business Concerns ,
• Eligibility of Women-Owned Small Businesses ,
• Eligibility of Economically Disadvantaged WOSB , and
• 8BD eligibility determinations, suspensions and terminations.

The OHA publishesunredacted final decisions within a few days of each decision being issued.

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Where To Find Business Grants

Below is a list of some of the most robust resources for finding grants that can aid your business:

• SBA.gov is one of the top places to search for grants. The government site is filled with various grant and financing opportunities.

• Grants.gov is the ultimate database for federal grants. You can search for grants by funding type, eligibility, category and agency. Be forewarned: Sorting through the database will require some effort, but the potential payoff is that you may find a grant opportunity that is perfect for your company.

• The Economic Development Administration administers grants for economically depressed communities to stimulate new jobs and commercial growth.

• Similarly, Small Business Development Centers offer local resources that can help your business.

In the wake of the coronavirus, there are resources, including federal and private funding sources, that are helping businesses cope with the drastic economic contraction that is affecting the world.

• Economic Injury Disaster Loans are administered by the SBA and can provide businesses with working capital to pay employees, rent and other expenses.
• In addition to government loans, companies like Verizon have created funds that provide grants to small businesses.

Grants Loans And Programs To Benefit Your Small Business

When you know where to look, help for your small business is there for the taking.

There are many grant programs available to small businesses, depending on a variety of qualifying factors.

Times are tough for small business, but help is available, from both the governmentfederal, state or localand the private sector. It may be in the form of a grant, a loan or a leg up competing in a difficult business environment. Heres a breakdown to help you sort through whats available.

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Guide To Government Business Loans

The U.S. government doesnt do much direct lending, but various government-supported programs are designed to offer small businesses access to affordable financing solutions. The most common program is the SBA loan program that offers small businesses long-term and low-interest financing than commercial lenders. Some of the commonly utilized best small business loans include:

• SBA 7 Loans: This loan is ideal for business owners who are looking to fund several small scale business operations.
• SBA CDC/504 Loans: This product is ideal for business owners looking to finance large projects such as real estate.
• SBA microloans: This product is best for funding the small needs of startups and new businesses.
• SBA Disaster Loans: This loan type is ideal for business owners whose businesses are struggling due to a declared disasters physical or economic damage. If your business is affected by the COVID-19 pandemic, you could qualify for this funding.
• Additional Government Loans: This product is ideal for business owners looking for financing for particular business needs.

Paycheck Protection Program Loans

Paycheck Protection Program loans are part of the CARES Act and were designed to make capital available to small business owners to help them maintain their payroll through the CORONA-19 crisis. The federal government intended that these loans would help employees stay off the unemployment rolls and businesses remain viable during the shutdown caused by the coronavirus.

If a small business uses the funds to make payroll and can document those payroll expenses, the loan can be forgiven. In general terms, the CARES Act states that loan forgiveness is available to a business owner who submits the following documents with an application for forgiveness to their SBA lender:

• Payroll tax filings reported to the Internal Revenue Service
• State income, payroll, and unemployment tax filings
• Documentation, including cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage obligations, payments of covered lease obligations, and covered utility payments

If youd like to read more about the Paycheck Protection Plan loans in more detail, we have published an PPP loan FAQ.

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A Man From Georgia Blew Most Of His Covid

• Prosecutors say a man from Georgia spent $US57,789 in pandemic relief loans on a Pokémon card.
• The loans were meant to help small businesses cover the economic fallout of the COVID-19 pandemic.
• The prosecutors accused Vinath Oudomsine of lying to the government about the size of his business.

A man from Georgia is accused of lying about the size of his business to a government agency and then blowing $US57,789 of his pandemic-relief loan on a single Pokémon card.

Prosecutors charged Vinath Oudomsine from Dublin, Georgia, with wire fraud on October 19, saying he was granted the relief fund by making false and fraudulent representations to the Small Business Administration before spending most of it on the collectable, The Macon Telegraph first reported.

In March 2020 Congress passed the Coronavirus Aid, Relief, and Economic Security Act, which made more small businesses eligible for the SBAs economic-injury disaster loans. The expansion was meant to help the owners of small businesses cover the economic fallout of the coronavirus pandemic by providing them with an emergency loan they could use on expenses such as payroll, production costs, and rent.

In a filing in the US District Court for the Southern District of Georgia, prosecutors wrote that Oudomsine unjustly enriched himself by obtaining EIDL proceeds under false and misleading pretenses, including lying about his companys revenue and how many staff it employed.

No Federal Grants For Businesses

The federal government does not offer grants for starting or growing a business. It only provides grants for nonprofit and educational institutions. These organizations focus mainly on medicine, technology development, and other related fields. Find out more about federal grants.

Some state and local programs offer business grants. They usually require you to match the funds. Or, they may expect you to combine the grant with other forms of financing, such as a loan.

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