Government Assistance for Small Business Owners
While grants are not available to small business owners through the U.S. government, other assistance programs do exist to help finance small business ventures, provide educational material and help small businesses build clientele. Local Small Business Association (SBA) offices can provide small business owners with information about government assistance programs specific to their area.
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General Services Administration
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The General Services Administration (GSA) provides small business owners with assistance programs that connect them with federal government contracts. The GSA holds nationwide events to help business owners learn about opportunities related to federal contracting. The Office of Small Business Utilization (SBU) within the GSA is a resource center for small business owners who have questions about or request guidance in procuring government contracts. Additionally, business owners can contact the SBU via email or phone if they have any questions.
Business Development Program
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Helping disadvantaged businesses compete with others, the SBA's 8(a) Business Development Program gives small business owners access to federal business contracts. To qualify for this program, a small business must have an owner who is economically or socially disadvantaged and controls at least 51 percent of the business. Good candidates for this program include business owners who are from an ethnic or a racial minority group, such as Native Americans or Latinos, and women.
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Small Business Loans
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In partnership with lending institutions, the SBA provides small business owners with "guarantee" small business loans. Through these programs, the government promises to pay lenders back a portion of a loan balance if the small business owner does not. The government guarantee helps reduce the risk of payment defaults, so lenders are more willing to approve business loans for which a small business owner would not typically qualify. Each small business loan program has different eligibility requirements.
The government also provides loans to small businesses located in an area that has been declared by the president as a disaster area and that has suffered damage as a result of the disaster. These specialized loans offer interest rates that are lower than 4 percent, loan amounts of up to $2 million and a repayment period of up to 30 years.
SBA Women's Business Center
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There are over 9 million small businesses owned by women in the U.S., according to the SBA. However, women still face obstacles in the business world that their male counterparts do not. To help support women entrepreneurs, the SBA created the Office of Women's Business Ownership. This program provides assistance programs specifically for women-owned companies, such as business counseling, training, technical assistance and educational resources for growing a business.
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References
- U.S. Small Business Administration; SBA Programs
- U.S. Small Business Administration; Office of Women's Business Ownership
- U.S. Small Business Administration; Business Physical Disaster Loans
- U.S. Small Business Administration; 8(a) Business Development Program FAQs
- U.S. Small Business Administration; Small Business Loans; January 2010
- U.S. General Services Administration; Office of Small Business Utilization Overview; December 2010
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