A couple of new loan programs could help struggling small businesses.
Banks began taking applications on Monday for small business loans under the federal government’s America’s Recovery Capital program. These loans, available through the Small Business Administration, can supply existing businesses facing immediate financial hardship up to $35,000 to pay down existing debt. Among the requirements, according to the SBA’s website:
Your small business must be an established business, have financial statements demonstrating it was profitable in one of the past two years, and be able to project sufficient cash flow to meet current and future loan payments over a two-year period from loan approval.
The loans are not available to start-ups or to businesses that are severely delinquent on their loans. Interested? Act quickly. As the New York Times reports, demand is expected to be high, and only a limited number of these loans are available. Details are available at the Small Business Administration’s website.
The Small Business Trends blog reported this week on a second program, currently just a pilot to help low-income entrepreneurs in select cities (no, Columbus isn’t one of them). The program is offered through Kiva, an organization that has helped obtain financial assistance for business owners in developing countries. Kiva matches lenders to entrepreneurs, and the initial pilot program here in the U.S. will involve facilitating microloans to low-income entrepreneurs. Kiva says it is working with its field partners, Opportunity Fund and ACCION USA, to expand the program to other parts of the country.
