State And Regional Economic Development Authorities
States, regions, and counties especially their economic development authorities are also places to look for funding options, Agudo says. Such programs may change depending on the priorities of the administration in charge, but it’s a good idea to stay informed about new programs they may be launching. For example, in late May, New York Gov. Andrew Cuomo announced the New York Forward loan fund, which targets small businesses with 20 or fewer full-time employees.
Ways The Government Could Help Your Small Business
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For business owners, it can be easy to think of the government as a giant hassle. Theres all that red tape you have to fight for necessary permits, then of course theres paying taxes, certifying employees, complying with all local, state, and federal laws, and the list goes on.
Still, despite the day-to-day hurdles that take up so much time and attention, our government traditionally has found many ways to support small business and foster growth. Heres a list of the ways, large and small, that local, state, and federal government work to help your small business.
Backbone Of Communities Across The Globe
We see small businesses as the backbone of communities across the globe, Andrea Gilman, Senior Vice President and Global SME Segment Lead at Mastercard, told webinar participants. Mastercard announced in April that it would be committing $250m over five years to support small businesses on matters ranging from digital payments and digital storefronts to cyber-protection, as well as understanding where they are on their own digital journey. The pandemic is affecting this segment more so than others, said Gilman, adding we really believe that getting digital will help all businesses, and that is why we have launched digital acceleration programs in all markets across the globe.
Tim Ogden, Managing Director of the Financial Access Initiative at New York University Wagner a research centre focused on exploring how financial services can better meet the needs and improve the lives of low-income households said: Theres no question that small businesses are bearing the brunt of the economic impact . Ogden said: The majority of small businesses are owned by people with below-median incomes, and also create jobs for lower-income households. Its the lowest-income wage earners who are seeing the biggest drop in wages .
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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.
Do Your Research & Choose Which Government Loan Fits Your Need
Not all government loans are available for everyone. For example, the Bayanihan CARES 2 program prioritizes MSMEs hit by the pandemic, while the HEROES program is only available for OFWs. So, you should make sure to do your research and prepare accordingly.
When choosing a government loan, make sure that the loan amount, loan term, interest rate, and other pertinent details match your plan.
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Who Is Eligible For Small Business Assistance
To be an eligible applicant, a business must be located in Prince Edward Island and:
- be registered to do business in Prince Edward Island
- actively operating on PEI and
- is the primary source of income for the applicant or employs at least one employee .
Ineligible applicants include:
- a business that has a defaulted outstanding debt obligation on file in the Provinces Central Default Registry
- fishers, farmers, and realty companies and
- banks and financial companies, including pawnbrokers, pay day loan, cheque cashing and white label cash machines.
Ceasing Financial Challenges Small Businesses Are Facing
The government helped small businesses by halting and deferring their financial burdens. This included deferring payroll tax, which allowed employers to delay payment on their employers Social Security contribution payroll tax. It was to be paid on December 31, 2021, and January 2022 for the other half. For more information about the pandemic tax relief, visit the IRS page.
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Target Services Available For Your Small Business
Every city, province or state has a small business office or economic development department. Staff there can refer you to local business incubators, networking events and financing programs. Often, these offices offer free business consulting services they will also help you to navigate complex government regulations.
Are you investing in research and development or building a new facility? Do you want to participate in an International Trade Mission? Tell the small business office about your expansion plans and they will direct you to the appropriate assistance that you need. Find your local small business office in Canada or in the U.S.
Need To Ask What The Long
In respect of initiatives that governments worldwide could typically invest greater resources in to help small businesses, Ogden suggestions included doing more to help firms with market access and helping small business owners to gain management skills. Governments, he said, should think creatively about schemes such as tax holidays, grants, equity, concessional credit and also protecting small businesses from bad actors such as fraudulent transactions and predatory lenders.
With reference to the pandemic, he said: We need to ask what the long-term possibilities are, not just how we enable small businesses to survive, say, the next six weeks.
Gilman also made the point that gender was typically given insufficient attention in debate about how the pandemic is affecting business, saying that women-owned small businesses have been disproportionately impacted.
Ogden also commented that programmes to help small businesses capitalise on digital opportunities need to be holistic. He explained: I get concerned when I hear All we need to do is get them online, then theyll be fine, which is markedly not the case.
In answer to an audience question about why governments should invest in small businesses in particular, Ogden emphasised his over-arching message of their relatively greater importance as employer of lower-income earners, among other reasons.
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Take On An Apprentice
Grow your own skilled workforce you need by taking on an apprentice. You can get government funding to cover some of the cost of training and assessing an apprentice if youre in England.
The government has recently launched a new website with details about how businesses can make the most of our apprenticeship reforms.
Cybercrime Protection For Small Businesses
Governments can maintain a safe and secure operating environment regarding cybersecurity, trust, and transparency as small businesses become increasingly digital, and hackers increasingly consider them as targets.
For example, the government provides free or subsidized cybersecurity products that may reduce their vulnerability and protect their customers and consumers data.
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Small Disadvantaged Business 8
To provide a fair method for small businesses owned by socially and economically disadvantaged people or entities to compete, the government limits competition for certain contracts to businesses that participate in the 8 Business Development program.
An SBA program that helps provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities that meet the following eligibility requirements:
- Be a small business.
- Not already have participated in the 8 program.
- Be at least 51 percent owned and controlled by U.S. citizens who are economically and socially disadvantaged.
- Be owned by someone whose personal net worth is $750,000 or less.
- Be owned by someone whose average adjusted gross income for three years is $350,000 or less.
- Be owned by someone with $6 million or less in assets.
- Have the owner manage day-to-day operations and also make long-term decisions.
- Have all its principals demonstrate good character.
- Show potential for success and be able to perform successfully on contracts.
See Title 13 Part 124 of the Code of Federal Regulations for more information.
Joining the small disadvantaged business program allows you to compete for set-aside and sole-source contracts in the program.You can also get help to navigate federal contracting, form joint-ventures, and receive management assistance.
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Khula Enterprise Finance Ltd
Khula helps SMMEs to get loans from banks. It does not lend money itself. Khula also provides mentorship to entrepreneurs, helping them to manage their businesses successfully. The mentorship programme includes the transfer of skills on a face-to-face basis, the development of viable business plans, and pre- and post-loan services.
Contact Khula: 012 394-5560/5900 or 0800 11 88 15Website: www.khula.org.za
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How Do I Qualify For A Small Business Grant
Each grant has specific qualifications youll need to meet in order to apply. Its important to review these first so you dont waste your time applying for grants you arent eligible for.
Some may require you to be in a certain industry. Others may require you to be in business a certain amount of time or be generating a certain revenue. You may have restrictions on how you use the funds.
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Good For: R& D Companies
The DoD offers grants to small businesses through the STTR program and a number of other initiatives, like the Defense Enterprise Science Initiative. The Office of Naval Research, the Air Force Office, and the U.S. Army Research Institute are all looking for research and development of technology that will help them reach their goals.
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An International Panel Explored How Governments Have A Key Role To Play In Driving Economic Resilience And Digitisation Among Small Businesses During The Unprecedented Challenges Brought About By The Pandemic
Small businesses are being disproportionately impacted by the economic damage of COVID-19 and governments should maintain momentum to help with their digitisation according to panellists at an international webinar featuring public- and private-sector representatives.
Small businesses are estimated to employ about 70 per cent of the worlds workforce and contribute around half of the worlds GDP. In less developed countries, small businesses are typically even more important to employment and GDP. But many particularly those not used to doing things digitally face tough times as the pandemic continues.
The webinar, entitled Planning for recovery: how can governments worldwide help small businesses to build back better?, was organised by Global Government Forum and sister publication Global Government Fintech and supported by our knowledge partner Mastercard on 1 October.
A four-strong panel explored the greatest challenges faced by small businesses during the pandemic how public and private sectors have collaborated to drive economic resilience and digitisation among small businesses and how governments can best help small businesses understand and prepare for the world beyond the pandemic.
Temporary Rule Or Regulation Change:
The Government of Ontario has launched a website inviting businesses to submit suggestions which could help them overcome the unique challenges posed by the COVID-19 pandemic. The province is prepared to allow temporary changes to provincial rules and regulations in order to remove any barriers that are hindering business and negatively impacting Ontarios supply chain. Businesses working to retool their operations to produce health-related products, or those that want to continue their operations in this new environment of physical distancing, can submit any potential roadblocks they are facing to the website.
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How Does The Government Assist Small Businesses
byKyle BernalJune 1, 2022, 4:29 am
The federal government has always taken part in helping small businesses. In recent years, fiscal stimulus programs, like tax breaks and incentives, were implemented to help entrepreneurs get out of hard economic times. At present, business owners need attention for another reason.
Bankruptcy and closure rates have been higher than ever since the global pandemic. Also, keeping up with technological advancements is a full-time job. So, how does the government assist business owners? It supports entrepreneurs through grants, financing programs, and other government assistance. Keep reading to learn more!
Strengthening Support To Small Businesses Applying For Sba Loans
To make it easier for small businesses, cities assigned more staff to assist entrepreneurs applying for SBA loans, making it favorable to minority-owned firms that may face difficulties in completing applications.
The SBAs primary mission is to aid, counsel, assist, and protect the interests of small business concerns by helping them understand, avail themselves of, and enforce their rights under federal laws and federal regulations.
This is particularly helpful for business owners whose native language is not English or without unlimited access to the internet or latest updates.
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Canadas Regional Development Agencies:
If you are a tourism operator or small- or medium- sized business or organization impacted by the sudden shifts in the economy and need pressing assistance, the RDAs could assist you with:
- Access to federal funding to help you stay in business.
- Advice and pathfinding to other available federal programs and services.
Why Should The Government Help Small Businesses
The small business sector is an essential part of economic growth, and the government must help these businesses succeed. Aside from that, small businesses employ about 47% of employees in the private sector, according to the 2017 Small Business Administrations economic profile.
The SBA also stated that in 2019, small businesses contributed about 44% of the GDP. These small companies were also responsible for creating more than 1 million jobs yearly, which accounted for 64% of new jobs in the U.S from 1993 to 2011.
Here are some other reasons why the government needs to help small businesses:
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What Is A Small Business Grant
A small business grant is essentially free money given to a small business owner to help them launch, develop or expand their organization. Grants, unlike a loan, do not have to be paid back, but they often come with restrictions on how the money can be spent.
Just because a grant is free money, doesnt mean it is easy to get. It takes a lot of time and preparation to apply for a grant, and they are highly competitive, so small businesses should only apply for grants they are eligible for.
Entrepreneurs and small business owners can seek a variety of grants, like private grants from corporations and government grants from federal, state, and local governments. Grants are also available for specific industries and demographics for example, if you are a minority business owner, there are several minority-owned business grants specifically geared toward you.
Key takeaway: Small business grants are free money given to small businesses by private corporations or federal, state, or local government.
Editors note: Looking for the right loan for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
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Education And Training Programs
To ensure businesses have access to trained workers, governments provide free schooling for primary and secondary students, grants and loans for higher education and worker training programs. Governments often work with trade schools, community colleges and universities to provide free worker training.
References
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Ensure They Get Good Advice
One of the biggest decisions many small business owners will face will be whether to borrow money to keep their business going or cut their losses. Thats something for which they should get sound professional advice.
But when small businesses are cash-strapped, cutting back spending on advisers such as lawyers and accountants can be an obvious way to save money.
State and local governments offer some support to small business advisory services. Western Australias Small Business Development Corporation, for example, provides free advice to local government for encouraging small business.
What we need now is a national program to ensure all small business owners can get good, free professional advice.
Role Of Government In Promoting Small Business
Related
Helping small businesses start and thrive is a win-win situation for the government. Local businesses help support the tax base through businesses taxes and through the wages provided to employees. The possibility of workforce expansion and economic growth prompts municipalities, counties, states and the federal government to offer various forms of assistance, such as grants, research opportunities, beneficial legislation and worker training programs. To find out what services are available in your area, contact your state and local economic development offices and ask about business incentives in your area.
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Supporting Jobs And Growth In All Communities
As Canada builds back better, no community will be left behind. From the outset of the pandemic, regional development agencies have been on the ground across Canada, helping businesses weather the effects of the pandemic. Through the $2 billion Regional Relief and Recovery Fund, they have been providing liquidity to businesses, helping bridge them to the recovery, and preserving more than 125,000 jobs. To ensure businesses in every corner of Canada have the support they need to get through the pandemic and that they are brought along in our economic recovery:
