To demonstrate basic knowledge of selected SBA loan programs, other federal assistance programs, and state and local programs that can benefits Clients. Gain an understanding of these programs, when to refer clients to them and their application to specific business needs.
You may be assigned to work with a Certified Business Consultant (Mentor) to complete this Module. Upon completion, the Center Director will ensure that you have accomplished the following tasks by signing the Training Checklist.
- Read Module 4, Assistance Programs, in its entirety
- Compete the Module 4 Exam Questions
This module will introduce the Business Consultant to the services available to clients in the form of SBA loan programs, other federal assistance programs and state and local programs.
Research the following loan programs to gain a basic understanding of the following SBA programs that support small business owners by clicking each program name below:
- 7a Loan Program: Serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.
- SBA Express & Pilot Programs: These programs offer streamlined and expedited loan procedures for particular groups of borrowers, notably active duty military personnel, veterans and borrowers from distressed communities.
- 504 Loan Program: Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a loan secured from a private-sector lender, a loan secured from an SBA Certified Development Corporation and a contribution of at least 10 percent equity from the borrower.
- Micro Loan Program: Provides short-term loans of up to $35,000 to small businesses and not-for-profit child-care centers for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. Proceeds cannot be used to pay existing debts or purchase real estate. The SBA makes or guarantees a loan to an intermediary, who, in turn, makes the micro loan to the applicant. These organizations also provide management and technical assistance. For general information on how to apply for an SBA loan, click here:.
- 8(a) Business Development Program and Small Disadvantaged Business Development Program: These programs help small businesses that are owned and designated by the SBA as being socially and/or economically disadvantaged by providing a wide range of services including support for government contractors, access to capital, management and technical assistance and export assistance.
- HUBZone Empowerment Contracting Program: Encourages economic development in historically underutilized business zones – “HUBZones” – through the establishment of preferences by providing federal contracting opportunities for qualified small businesses located in distressed areas.
- System for Award Management: SAM is a federal government owned and operated free website that consolidates the capabilities of CCR/FedReg, ORCA and EPLS. Future phases of SAM will add the capabilities of other systems used in federal procurement and awards processes.
- Small Business Innovation Research/Small Business Technology Transfer: The SBIR program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization.
- Small Business Investment Company: The mission of the SBIC program is to improve and stimulate the national economy and small businesses by stimulating and supplementing the flow of private equity and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources.
- USDA Business and Industry Guaranteed Loan Program: The B&I Guaranteed Loan Program administered by the U.S. Department of Agriculture is similar to the SBA 7a Loan Guarantee Program except that it is intended to stimulate rural economies by providing financial backing for rural businesses
- Colorado Office of Economic Development and International Trade: COEDIT works with statewide partners to create a positive business climate that encourages dynamic economic development and sustainable job growth. The CSBDC Lead Center office is hosted by OEDIT.
- Rocky Mountain World Trade Center Institute: The RMWRCI facilitates international trade by educating, serving and connecting businesses in the Rocky Mountain region to a global network of 330 World Trade Centers in 100 countries. Check out the event calendar for introductory business training classes.
- Colorado Department of Transportation Disadvantaged Business Enterprise Program: CDOT offers a DBE program to assist owners of businesses that contract or subcontract with it to receive technical and bid assistance.
- Colorado Association for Manufacturing and Technology: CAMT is a statewide manufacturing assistance center dedicated to increasing the competitiveness of Colorado manufacturers.
- Colorado Enterprise Fund: CEF was founded in 1976 as a non-profit lending source specializing in loans up to $250,000 to support small businesses. Many small businesses that are not able to receive traditional bank finance can get support through CEF. By offering loans, guidance, training and resources to small and emerging businesses, CEF is an important conduit to local community vitality and economic development in Colorado.
- ACCION: ACCION is an award-winning non-profit organization dedicated to providing the tools entrepreneurs need to operate, grow or start a business. It increases access to business credit, makes loans and provides training to help entrepreneurs realize their dreams and help businesses thrive with term loans and lines of credit up to $150,000. ACCION empowers people to be catalysts for positive change – one small business at a time.
- Rocky Mountain Micro Finance Institute: RMMFI is a non-profit organization that provides learning, lending and coaching to grow community entrepreneurs who build businesses to advance along the pathway to self-sufficiency and self-worth. RMMFI\’s brand of microfinance combines affordable and approachable business support services and flexible microloans to help individuals turn a good idea into an income-generating business.
- Colorado Lending Source: CLS is the state’s non-profit, small business financing expert. CLS works with small businesses to create and retain more than 16,500 jobs across Colorado while helping to pump $170 million into the state’s economy.
- Colorado Housing and Finance Authority: CHFA’s mission is to finance the places where people live and work throughout Colorado. It provides fixed rate financing to homebuyers, small to medium sized businesses and multifamily rental housing developers. It also provides education and technical assistance about affordable housing and economic development. It does all this through a network of partners such as banks, developers and local governments.
- Colorado Procurement Technical Assistance Center: PTAC provides technical assistance to help companies sell products or services to government agencies through free, confidential consulting.