HISPANICS IN GOVERNMENT
How the Government Helps Small Businesses Programs provide business counseling and government-backed loans
hether you’re thinking about opening a new business or you’re trying to strengthen or expand an enterprise you al- ready have, the Small Business Adminis- tration (SBA) is there to help. The SBA is a federal agency that helps small businesses grow and succeed. It pro- vides business counseling and training, and offers a wide range of financing programs such as loans and grants.
W
Counseling and Training You can get immediate help from the
SBA by taking one of its online training courses on how to start, manage and fi- nance a business. Each subject features a variety of courses about successful busi- ness management. The SBA also works with community centers that provide free or low-cost train- ing and mentoring. For example, SCORE is a nonprofit organization comprised of volunteer counselors with extensive expe- rience in the business world. SCORE pro-
vides mentoring and counseling services to new business owners. In addition, you can visit local or re-
gional SBA offices for support. These of- fices are located throughout the country and can counsel you in matters such as: „How to find your local women’s busi- ness centers „How to get technical assistance „How to get disaster assistance
Access to Capital A lot of people think the SBA lends
money. The truth is that it only guarantees loans made by financial institutions such as banks. SBA-backed loans can be very at- tractive because they generally have low interest rates and longer repayment terms. The SBA offers several loan programs,
including: „7(a) Loan Program: This program is for businesses operating in specific industries such as exports or for businesses located in rural areas or underserved communities.
Active duty military personnel and veter- ans can also benefit from these types of loans. „Micro-Loan Program: This program is for certain small businesses and nonprofit organizations, including childcare centers. The maximum loan amount is $50,000, which can be used to pay for inventory or to purchase equipment. However, money from these loans cannot be used to pay debt or to purchase real estate. „CDC/504 Loan Program: This is a pro- gram for businesses looking for long-term financing. The money can be used to pur- chase real estate, new facilities, and ma- chinery or equipment. The program has several stipulations, including one that re- quires the funds to be used to encourage economic development in a community. You can get more information about some of these programs as well as addi- tional local resources by clicking on the SBA Direct link at
SBA.gov.
Other Types of Financing Besides guaranteeing loans, the SBA can also help entrepreneurs locate other types of financing, such as grants. It’s im- portant to note that the SBA does not pro- vide grants for starting or expanding a business. The agency does provide grants to nonprofits and educational organizations for counseling and training purposes. Local and state governments do provide
grants to small businesses, specifically those involved in childcare, energy effi- ciency and local tourism. Find out more about the different types of government grants available by visiting
Grants.gov.
USA.gov and
GobiernoUSA.gov are
the U.S. Government’s official web portals in English and Spanish, and part of the U.S.
General Services Administration (GSA). Sources:
GobiernoUSA.gov/USA.gov; HYPER- LINK “
http://www.sba.gov”
SBA.gov
48 HISPANIC NETWORK MAGAZINE Celebrating 19 Years of Diversity
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