SBA meets with financing groups

PROVIDENCE – The U.S. Small Business Administration’s district office in Rhode Island recently called together local financing institutions and technical assistance providers for a training session to ensure proper support of small businesses.
“It is critical that SBA lenders and technical assistance providers have all the tools they need to help small businesses start, grow and succeed,” said Mark S. Hayward, director of the SBA in Rhode Island. “This was the first of many training initiatives for our partners to make certain they have the most up-to-date information about SBA programs and services to better serve the small business community.”
Participants included local banks and credit unions, the South Eastern Economic Development Corporation, the Rhode Island Small Business Development Center, SCORE (Counselors to America’s Small Business) and the Center for Women and Enterprise.
The meeting came ahead of an extension of higher guarantees of some SBA-backed loans and the waiving of fees.
President Barack Obama signed into law last week legislation that extends the additional benefits for the 504 and 7(a) loan programs through April.
The SBA estimates the $40 million extension will support about $1.4 billion in small business lending.
Under the American Recovery and Reinvestment Act of 2009, the SBA had increased the guarantee on 7(a) loans to 90 percent and to waive borrower fees on most 7(a) and 504 loans.
The initial $730 million appropriation was exhausted in November, but the benefits have been extended three times since then.
Other SBA assistance is available, too.
As the SBA Intermediary Lender for the SBA Micro Loan Program in Rhode Island, SEED has access to $3.5 million to make loans and provide technical assistance. Micro loans up to $35,000 are available for existing businesses and startups, including home-based ones.
The loans can be used for working capital, inventory, machinery and equipment, furniture and fixtures, and refinancing business credit card debt with high interest rates. The term on the loans is up to six years and the current rate is 6 percent fixed.
The SBDC at Johnson & Wales University provides entrepreneurs with counseling and low-cost group educational services. The organization connects university, government, banking, private sector, and other community-based resources to support small businesses and to promote economic development.
SCORE offers free, confidential management counseling from volunteers who are successful entrepreneurs.
CWE provides education, training, technical assistance, women’s business enterprise certification and access to both debt and equity capital to entrepreneurs. The organization works with industry leaders and other economic development organizations in the region.