Federal Programs
Four types of CDFIs
1) Community Development Banks 2) Community Development Credit Unions 3) Community Development Loan Funds 4) Community Development Venture Capital Funds
Small Business Eligibility for 7(a) Loan Program
1)Good character 2)Demonstrated record for success 3)Good credit rating 4)Sufficient funds to the operate the business at a profit 5)Pledged personal and/or business assets 6)Meet SBA size standards
Five CAPLines programs
1)Seasonal Line 2)Contract Line 3)Builders Line 4)Standard Asset-Based Line (usually utlized by businesses thay provide credit to others. Convert short term assets to cash and remitting to lender) 5)Small Asset-Based Line (200k limit)
Federal Financing Programs
1)The Small Business Administration (SBA) 2)The Economic Development Administration (EDA) 3)The United States Department of Housing and Urban (HUD) 4)The United States Department of Agriculture (USDA) 5)The Export-Import Bank of the United States
Engineering Research Centers
Focus on the definition, fundamental understanding, development, and validation of technologies needed to realize a well-defined class of engineered systems with the potential to spawn whole new industries or radically transform the product lines, processing technologies, or service delivery methodologies of current industries.
Value-Added Producer Grants (VAPG)
First authorized in 2001, grants are awarded for planning activities and for working cap for marketing value-added agriculture products and for farm-based renewable energy.
Manufacturing Technology Program (ManTech)
Focuses on the needs of weapon system programs for affordable, low-risk development and production. Link between technology invention and development and industrial applications.
Economic Adjustment Assistance Program
Funds are used primarily to support projects that: build on or create new industry clusters to enhance the competitiveness of that region, support technology-led development, or advance community and faith-based social entrepreneurship in redevelopment strategies for regions of chronic economic distress.
Small Business Innovation Research (SBIR)
Funds high-risk research and development (R&D) efforts with excellent commercial potential. The purpose of the program is to 1) stimulate technological innovation, 2) bring small businesses into the federal R&D process, 3) encourage participation by disadvantaged and minority persons in technological innovation, and 4) increase private sector commercialization of federal R&D.
State CDBG Programs
Grants only to general local government that carry out development activities. Each state develops funding priorities and criteria for selecting projects.
Business and Industry Direct Loans (Rural)
Provides loans to public entities and private parties who cannot obtain credit from other sources for improving, developing, or financing business and industry, creating jobs and improving the economic and environmental climate in rural communities.
International Trade Loans
Provides long-term financing to help small businesses compete more effectively and significantly expand or develop export markets. Loan maturities cannot exceed 25 years, excluding the working capital portion of the loan.
504 Small Business Loans
Provides long-term, fixed-rate financing to small business for major fixed assets such as land, buildings, and equipment. Usually includes a loan secured with a senior lien from a private-sector lender that covers up to 50 percent of the project cost, loan secured with the junior lien from the CDC covering up to 40 percent of the project cost, and a contribution of at least 10 percent equity from the small business.
7(a) Regular Loan Program
The SBA's general business loan program. It is a zero subsidy loan financed through fee income to SBA from and lenders. Small businesses go directly to participating banks to apply.
CAPLines Revolving Line of Credit
The umbrella program for short-term and cyclical working capital needs.
Commercial Technology Program
To meet the technological needs of American industry and boost US international competitiveness, NASA operates a technology transfer network, composted of a national Technology Transfer Center and six regional technology transfer centers.
Materials Research Science and Engineering Centers
University-based centers support interdisciplinary materials research, work with industry to strengthen the connection between materials research and commercial use, and promote materials science education.
National Workforce Assistance Collaborative (NAWC)
Its mission is to help small and mid-sized businesses adopt high performance work practices, become more competitive and ultimately, create and retain high-skill, high-wage jobs for American workers.
Research Partnership Centers
Leverages NASA funds with investments from industry, government agencies, and universities to create dual-use technologies for NASA and to benefit society.
Export Credit Insurance
Limits risk, provides credit to international buyers and opens up access to working capital funds.
Patriot Express Loans
Loans made to military community members. Offer the most competitive interest rate of any loans offered by the SBA , usually between 2.25 % to 4.75 % over prime depending upon the size and maturity of the loan.
MicroLoans
Loans that can be used for the purchase of machinery and equipment, furniture and fixtures, inventory, supplies, and working capital. They cannot be used to pay off existing debts or to purchase real estate.
Community Express Loans
Loans up to $25,000 offered to small businesses operating within communities that qualify as Historically Underutilized Business Reinvestment Act (HUBZones) or as distressed communities according to the Community Reinvestment Act. These loans are used primarily to encourage small business start-ups in these communities.
Rural Business Enterprise Grants
Makes grants to public bodies, private nonprofit corporations, and federally-recognized Indian Tribal groups to finance and facilitate development of small and emerging private business enterprises located in areas outside the boundary of a city or unincorporated areas of 50,000 or more and its immediately adjacent urbanized or urbanizing areas.
Hollings Manufacturing Extension Partnership (MEP)
Nationwide network of not-for-profit centers in nearly 350 locations nationwide, whose sole purpose is to provide small and medium sized manufacturers with the help they need to succeed.
CDFI Programs
Organizations can become certified as CDFIs and are then eligible to receive funding through the various programs offered by the CDFI fund.
Federal Laboratory Consortium
All of the major federal laboratories and centers are members. Serves as a link between individual facilities and potential government development technology users; its mission is to improve technology transfers between federal facilities and potential users.
Section 108 Loan Guarantee Program
Allows transformation of a small portion of CDBG funds into federally guaranteed loans large enough to pursue substantial physical and economic revitalization projects. Allows for limited new housing construction, rehabilitation of publicly owned facilities, and debt servicing of the guaranteed loan and related public offerings.
Advantages of 7(a) program
An extended repayment term. Working capital loans can have maturities of up to seven years while loans up to 25 years are available to finance fized assets such as the putchase of real estate.
The Export Working Capital Program (EWCP)
Another program under the 7(a) Loan program, designed to provide financial assistance to export-ready companies. This program is designed to make securing working capital easier for businesses who may not typically be able to secure it to support their export sales.
Small Business Surety Bonds
Assists small and emerging contractors to obtain bonding that would otherwise be unavailable to them. Under this program, SBA guarantees bid payment, and performance bonds that are issued by private-sector surety companies, so that small contractors can compete for contract awards up to $2 million.
State Science and Technology Institute
Conducts research to provide economic development practitioners and policymakers with information essential to the development, implementation and evaluation of policies and programs for building tech-based economies.
Cooperative Research and Development Agreements (CRADAs)
Cooperative research and development agreement between a federal government agency and one or more partners from private industry, academia, the nonprofit sector, and/or state and local governments. The partnerships optimize resources, and promote the sharing of technical expertise in a protected environment, intellectual property emerging from the effort and speeding the commercialization of federally developed technology.
Short-Term Insurance
Covers a wide range of goods, raw materials, spare parts, components, and most services on terms up to 180 days.
Community Adjustment and Investment Program (USCAIP)
Created in tandem with the passage of the North American Free Trade Agreement (NAFTA) in 1993 to provide credit to new or expanded businesses in communities with significant job losses due to changes in trade patterns with Canada and Mexico. Loans allow for the payment of fees on eligible loans, including 7(a) loans and the 504 program guarantee and CDC and lender fees.
The Small Business Administration
Creates to aid, counsel, assist, and protect the interests of small businesses in the United States. Guarantees a portion of loans made by third-party lenders to qualified small businesses that cannot obtain financing on reasonable terms through normal lending channels.
Industry/University Cooperative Research Centers
Develops long-term partnerships among industry, academia, and the government.
Defense Advanced Research Products Agency (DARPA)
DoD's primary research and development organization, managing and directing basic and applied research and development projects. Supports research and technology projects that have a high level of risk, potentially high payoff levels, and the potential to provide dramatic advances for traditional military roles and missions.
Superfund Innovative Technology Evaluation Program (SITE)
Encourages development and implementation of innovation treatment technologies for hazardous waste side remediation and monitoring and measurement technologies.
University Transportation Center Program (UTC)
Encourages development of US transportation technologies and expertise.
Rural Energy for America Guaranteed Loan Program
Encourages the commercial financing of renewable energy sources, including wind, solar, biofuel, geothermal, hydrogen and hydro power.
Community Development Financial Institutions (CDFI) Fund (US Treasury)
Entities that provide affordable credit and investment capital to economically distressed areas and populations.
The United States Department of Housing & Urban Development (HUD)
Established in 1965 by the Housing and Urban Development Act, this agency administers programs that provide assistance for housing and for the development of the nation's communities. Also coordinates other federal efforts that impact community preservation and development.
Economic Development Administration (EDA)
Established in 1965 to generate new jobs, help protect existing jobs and stimulate commercial and industrial growth in economically distressed areas of the United States. Housed in the Department of Commerce under the Public Works and Economic Development Act.
Rural Economic Area Partnership Zones
Established to address critical constraints in economic activity and growth, low density settlement patterns, stagnant or declining employment, and isolation that has led to disconnection from markets, suppliers and centers of information and finance. 5 designated zones in the US.
Business and Industry Guaranteed Loans
Helps create jobs and stimulates rural economies by providing financial backing for rural businesses. Guarantees up to 80% of loans under $5M, 70% of loans between $5-10M and 60% of loans over $10M. Can be used for working cap, machinery and equipment, buildings and real estate, and certain types of debt financing.
Working Capital Financing
Helps exporters obtain loan capital to facilitate the export of goods and services. Guarantees 90% of the principal and interest of bank-originated commercial loans, up to 100% of the value of the US export. Loan maturities may extend to 36 months and the debts are secured by export-related accounts receivable and inventory (including work-in-progress) ties to an export order.
Science and Technology Centers
Integrative partnerships program enables innovative research and education projects of national importance that require support to achieve the research, education, and knowledge-transfer goals shared by the partners - conduct world-class research in partnership with academic institutions, national laboratories, industrial organizations, and/or other public/private entities to create new and meaningful knowledge to benefit society.
New Markets Venture Capital (NMVC) companies
Privately managed, newly formed, for-profit investment companies established to provide equity-type capital and hands-on operational assistance to smaller businesses located in specific rural and urban areas.
Industrial Technologies Program (ITP)
Program that works to strengthen environmental quality, energy security, and economic vitality through public-private partnerships that work to reduce overall energy use and carbon emissions from industry. Offers technical assistance as well as funding for research and development efforts.
Intelligent Transportation Systems (ITS)
Promotes intelligent vehicles infrastructure and the creation of an intelligent transportation system through the application of advanced wireless technologies.
Rural Business Opportunity Grants
Promotes sustainable economic development in rural communities with exceptional needs. Grants to pay for for economic planning in rural communities, technical assistance for rural businesses, or training for rural entrepreneurs or economic development officials.
Advanced Technology Program (ATP)
Promotes the development of innovative technologies that promise significant commercial payoffs and widespread benefits for the nation. Focuses on the technology needs of American Industry, not those of the government.
Medium-Term Insurance
Protects longer-term financing to international buyers of capital equipment or services, covering one or a series of shipments.
The United States Department of Agriculture (USDA)
Provide a number of financing mechanisms available to help rural businesses.
Rural Economic Development Loans (Utilities)
Provide zero-interest loans to electric and telephone utilities financed by the Rural Utilities Services (RUS), an agency of the USDA, to promote sustainable rural economic development and job creation projects. The RUS utility is required to re-lend, at zero-percent interest, the loan proceeds to an eligible "third-party recipient" for the purpose of financing job creation projects and sustainable economic development in rural areas.
Small Business Technology Transfer Program (STTR)
Provides federal research funding to nonprofit organizations by requiring five federal agencies to designate .3% of their research budget to small business and non-profit research institution partnerships in order to enhance research and the commercialization of new technologies. Major difference between STTR and SBIR is that STTR projects must involve substantial (at least 30%) cooperative research collaboration between the small business and a nonprofit research institution.
Community Development Block Grant (Entitlement Communities) Program
Provides funds to state ans localities for local economic development efforts. Amount of each grant is determined by a formula, which uses several objective measures to gauge the community and its needs, including the extent of poverty and housing overcrowding, total population, population change, and the age of the local housing stock.
Intermediary Relending Program
Revolving loan program where rural business programs lend money to nonprofit organizations or public entities with at least 51 percent rural membership. Loans made by the Rural Business-Cooperative Services (RBS) of the USDA to intermediaries re-lend funds to ultimate recipients for business facilities or community development.
SBA Express Loan Program
Special type of loan offered under the 7 (a) loan program. It offers an expedited review process applications, sending applicants a response within 36 hours of submitting their loan application. Two types: community express loans and patriot express loans.
National Institute of Food and Agriculture (NIFA)
Supports research in agriculture, the environment, and human health at Land-Grant Universities. Provides funding to researchers at these institutions and helps states identify target areas for research, education and extension so as to best support small businesses, agriculture producers and the community.
Export-Import Bank of the United States
The official export credit agency of the United States, their mission is to help generate domestic job growth by helping to finance the export of US goods and services to international markets.