Greetings! - Message from the State Director -
Welcome to the first in a series of newsletters that will provide you with important federal and state small business news as well as valuable tips on growing a successful business. This issue focuses on the 2009 American Recovery and Reinvestment Act. The West Virginia Small Business Development Center (WVSBDC) staff is working closely with the Small Business Administration (SBA) to help our clients understand how they can better prepare their business to pursue opportunities created by the Recovery Act. To further help you during this economic downturn, we offer a free instructional course called “Thriving in a Challenged Economy.” The course is offered at locations across the state. In the class, professional business counselors help you take steps to find assistance, shore up finances and create a strategic plan for tough times. The WVSBDC also provides free one-on-one, confidential counseling for those who want to start a new business or expand their existing company. For more information about the courses or other small business questions, call the West Virginia Small Business Development Center’s free “Ask ME” business answer line at 1-888-982-7232 or send an e-mail to askme@wv.gov.
West Virginia Stimulus Information Available on New State Web Site
Gov. Joe Manchin recently announced the launch of a new Web page comprising West Virginia Recovery Act (Stimulus) Information. This Web site provides up-to-date information about the stimulus dollars that the State of West Virginia is and will be receiving from the federal government through the passage of the American Recovery and Reinvestment Act (ARRA) of 2009. The site contains a search feature and allows individuals to view information by topic or by county. The site will be updated continually. Visitors also will be able to sign up to receive updates via email, RSS feeds or Twitter to stay apprised of all the latest developments.
Implementing the American Recovery and Reinvestment Act of 2009 (Recovery Act)
The Small Business Administration reported details on the Recovery Act implementation
- $375 million for temporarily eliminating fees on SBA-backed loans and raising SBA’s guarantee percentage on some loans to 90 percent. The elimination of fees will remain in effect until the end of the calendar year or until the funding is exhausted.
- $255 million for a new loan program to help small businesses meet existing debt payments
- $30 million for expanding SBA’s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders
- $20 million for technology systems to streamline SBA’s lending and oversight processes
- $15 million for expanding SBA’s Surety Bond Guarantee program
- $25 million for staffing up to meet demands for new programs
- $10 million for the Office of Inspector General
SBA Announces Dealer Floor Plan Financing Program
The U.S. Small Business Administration (SBA) is committed to providing small businesses with the tools and resources they need to survive in the current economic climate. Starting on July 1, 2009, through the Dealer Floor Plan (DFP), SBA will offer government guaranteed loans to finance inventory for eligible auto, recreational vehicle (RV), boat, manufactured home and other dealerships. The DFP is a pilot program that allows dealers to borrow against retail inventory and acts as a revolving line of credit for a dealer to obtain financing for retail goods. The dealer repays the debt as their inventory is sold and can borrow against the line of credit to add new inventory.
America’s Small Businesses Recover with SBA’s ARC Loans
If your small business is stressed meeting expenses during these economic times, the U.S. Small Business Administration has developed a new loan program to help. SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan. Examples of qualifying loans may include credit card obligations for your business, capital leases, notes payable to vendors/suppliers, Development Company Loan Program (504) first lien loans, other loans to small businesses made without an SBA guaranty, and loans made by or with an SBA guaranty on or after Feb. 17, 2009. ARC loans are designed to help businesses experiencing immediate financial hardship for reasons such as:
- Loss/reduction of customer base
- Increase in cost of doing business
- Loss/reduction of working capital and/or loss/reduction of short term credit facilities
- Inability to restructure existing debts due to credit restrictions
- Loss/reduction of employees (intellectual capital)
- Loss/reduction of major suppliers (major suppliers out of business) Borrowers whose loans are already severely delinquent or whose past performance or future cash flow indicates that the business is not viable are not good candidates for an ARC loan. For more information call the Business Ask Me Line at 888-982-7232.
Posted by Matt Livengood on June 22, 2009 at 9:01 am in the following categories: Small Business Development Center
