All About SBA Loans and Support Programs

In this review, we will describe the most important programs for supporting small and medium-sized enterprises (SME), indicating the main users and structures implementing these programs. The following is a list of areas by which SME support programs are grouped in this review:

SME financial support programs;
A system of accelerated financial support and certification of creditors;
Financing other SBA loan programs;
Investments in equity;
Warranty guarantees;
Assistance to SMEs in securing participation in supplies for the federal government;
Research and new developments in SMEs;
Consulting and technical assistance to SMEs;
Information service for entrepreneurship;
Disaster relief;
Assistance to veterans of the armed forces;
Support for exporters;
Support for Native Americans;
Support for small and depressed enterprises;
Support for women’s entrepreneurship;
Depressive zones.

7 (a) Loan Guaranty

Basic program “7 (a) Loan Guaranty” is the main credit support tool for SMEs in the USA, providing short-term and long-term loans to start-up and operating, sustainable and creditworthy enterprises that cannot receive financing on acceptable terms from ordinary financial sources. Under this program, SBA provides financial support to SMEs by providing guarantees through its partner lending institutions. SBA’s Department of Securing Access to Capital coordinates the implementation of the 7 (a) Guarantee Loans program.

Loans are provided for the most common needs of SMEs (purchase of real estate, equipment, equipment, inventory or for working capital). Loans cannot be used for speculative operations. Under this program, SBA can mainly provide guarantees for amounts up to a maximum of $750,000. The guarantee level is mainly 80% of the loan amount up to $100,000 or 75% for loans over $100,000. In addition, the guarantee level can reach 90% for loans up to $100,000 under the Export Working Capital Program. For loans less than $50,000, the rate of loan interest may be slightly higher. Loans are provided for working capital for a period of up to 10 years, and for the acquisition of fixed assets for a period of up to 25 years. Below we will briefly review specialized SME financing programs using the resources of Program 7 (a).

Clients: loan guarantees are presented to start-up and existing SMEs, as well as to commercial credit institutions.

Loans are provided by commercial credit institutions.

CAPLines Program

Program: “Short-term financing and the provision of working capital -“CAPLines” is guided by the basic principles of the Basic Program 7 (a) Guarantee Loans and provides a maximum guarantee of up to $750,000. “CAPLines”provides 5 of the following credit lines:

Seasonal lending is periodically renewable (revolving) and non-revolving to create the necessary inventory or to help pay bills during seasonal peaks in business fluctuations. Contract lending to finance the labor and cost of materials related to the implementation of signed contracts (renewable and non-renewable).

Construction loans for small general contractors or small construction companies involved in the construction or reconstruction of commercial or residential buildings. Loans are used to finance labor and material costs. The presence of a construction project is one of the conditions for obtaining a loan (renewable and non-renewable).

The Standard Asset-Based line of credit is designed to resume providing regulatory requirements to guarantee long-term loans to finance cyclical growth, repetitive and / or short-term capital requirements. Compensation of such loans is carried out by converting short-term assets into cash sent to the lender. Enterprises with their own assets constantly receive funds under such a credit line and are paid out as cash flows. This credit line is mainly used by companies that provide loans to other enterprises. Since such a lending system requires ongoing maintenance and monitoring, credit organizations may require additional fees.

The Small Asset-Based line is intended for the renewable provision of regulatory requirements for guaranteeing long-term loans of up to $200,000. The lending procedure is similar to the above, however, it does not have some operational restrictions, which allows enterprises to repay the loan from the existing cash flow.

Clients: beginner and current SMEs.

Loans are provided by commercial credit institutions.

Defense Loan & Technical Assistance – DELTA

The DELTA program is designed to help defense SMEs who, due to reduced military spending, are forced to reorient to commercial markets. These enterprises need financial and technical support to preserve the former and create new jobs. This applies primarily to enterprises:

located in settlements experiencing difficulties in connection with such a reorientation of production;
carrying out the modernization and / or expansion of diversified production facilities and technical and production base enterprises that remain in the national register.

The DELTA program uses the financial resources of the Basic Program 7 (a) Guarantee Loans and provides a maximum guarantee of up to $1.25 million. In addition, for this purpose, and / or the resources of the “Credit Program 504” with a maximum guarantee for debt obligations up to $1,000,000 can be attracted. Federal, regional and private organizations provide a range of managerial and technical support measures for borrowers under the DELTA program.

Clients: SMEs focused on defense needs and affected by a reduction in military spending.

Assistance is provided by local SBA offices and partner organizations.

Community Adjustment and Investment – CAIP

This program is aimed at preserving existing and creating new sustainable jobs at enterprises located in settlements at risk of changing trade ties as a result of the entry into force of the North American Free Trade Agreement (NAFTA). Assistance seekers should be located in communities affected by NAFTA. In accordance with the requirements of Program 7 (a) Guarantee Loans, applicants must demonstrate within 24 months their ability to create or maintain at least one workplace for every $70,000 investment they receive from federal guarantee funds. For the same purpose (CAIP), under the “Loan Program 504” debt obligations of up to $ 35,000 can be provided to cover the costs of creating (or maintaining) one workplace.

Clients: enterprises located in villages that have undergone significant job cuts with the introduction of NAFTA.

Assistance is provided by the North American Development Bank, SBA and the US Department of Agriculture.

Export Working Capital – EWCP

The program makes it possible to obtain SBA guarantees of up to 90% for a secured loan, or for any loan of less than $750,000. The duration of the loan can reach 3 years with annual renewal. Loans can be intended for one or several types of export sales, and can also be extended to obtain working capital at the stage of preparation for deliveries, or for insurance coverage after the shipment of goods, or as a combination of the last two options. These operations can only be used to finance export transactions.

Clients: small enterprises prepared for export activities.

Assistance is provided by commercial credit institutions.

International Trade Loan – ITL

The program is aimed at long-term financing of small enterprises preparing for foreign trade activities or already involved in international trade. In addition, it applies to enterprises that suffer from competition with imported goods. For such enterprises, SBA can guarantee loans of up to $1.25 million used to acquire fixed assets or attracted as working capital. However, the share of the loan allocated to working capital should not exceed $750,000.

Clients: small enterprises prepared for export activities.

Assistance is provided by commercial credit institutions.

Energy & Conservation Loan

The program aims to finance small enterprises focused on the development, manufacture, supply, marketing, installation or maintenance of energy-saving equipment, as well as enterprises developing services that contribute to the conservation of national energy resources.

Clients: small enterprises.

Assistance is provided by commercial credit institutions.

Pollution Control Loan

The program is aimed at providing financial assistance to small enterprises who plan, develop or install pollution control devices. This program covers most private real estate properties that intend to reduce environmental pollution. Unlike the Energy & Conservation Loan program, the Environmental Pollution Control Lending program is targeted at end users of environmental pollution control devices. This program has a maximum loan term provided by SBA in the amount of up to $1 million.

Consumers: owners of industrial buildings and structures, buyers of equipment for environmental pollution control and enterprises for their maintenance.

Assistance is provided by commercial credit institutions.

Secondary Market

The program enables lenders (holders of loans under SBA guarantees) to improve the liquidity of their capital by selling guaranteed and non-guaranteed parts of their loans to various investors. The most common buyers in the secondary loan market are first of all banks, savings and credit companies, credit unions, pension funds and premier insurance companies.

Consumers: commercial credit institutions participating in SBA loan guarantee programs, dealers in the stock market. Services are provided by loan borrowers, stock market dealers and a system of secondary sales of guaranteed government bonds.

Certified and Preferred Lenders

The lender certification procedure provides them with partial delegation of SBA rights to provide loans to other borrowers. Unlike certified lenders, SBA corporate lending rights are fully delegated to privileged lenders. Only the most active and experienced SBA partners in implementing loan programs can be classified as certified or preferred lenders. SBA’s regional and local branches keep a constant record of partners in implementing loan programs.

Clients: small enterprises and commercial credit institutions participating in the implementation of SBA loan guarantee programs.

Services are provided by commercial credit institutions.

Low Documentation Loan – SBALowDoc

The program allows you to get a loan of up to $150,000 with minimal paperwork. To do this, fill out an application on one page, describing the stability of the applicant’s stable position and his or her credit history. If this data meets the requirements of the lender, then they may require guarantees from SBA to provide a loan through the LowDoc system.

Clients: starting and operating small enterprises.

Services are provided by commercial credit institutions.

SBAExpress

The program aims to encourage lenders to provide a large number of small loans of up to $150,000 to small enterprises. SBA partner banks for lending programs serve these borrowers using their methods, procedures and documents. These banks ensure the rapid provision of loans and carry out all operational activities on loans until their repayment. In turn, SBA provides up to 50% guarantee on such loans.

Clients: Starting and operating small enterprises.

Services are provided by specialized commercial credit institutions.

CommunityExpress

The program is aimed at accelerating economic development, expanding the number of jobs in social groups living in undeveloped areas or in inner-city disadvantaged zones. This nationwide program provides loans up to $250,000 and technical assistance to social groups (communities) located in certain geographical and territorial zones. Credit organizations of CommunityExpress and the National Community Reinvestment Coalition (NCRC) provide support, training, and practical training for residents of such closed communities, involving non-profit organizations and partners from NCRC.

Clients: Operating and emerging small enterprises owned by national minorities. Entrepreneurs from among women and veterans, if their representation in this community is lower than in the whole country. Enterprises located in low or moderate profitability areas located in cities and rural areas.

Services are provided by specialized commercial credit institutions and the National Community Reinvestment Coalition.

Loan Prequalification

The program enables the SBA to carry out a preliminary business and personal assessment of the applicant for the possibility of providing him or her with loan guarantees under program 7 (a) for a loan of up to $250,000. Such an assessment is made before applying for a loan to the bank. The whole procedure is focused more on assessing the character of the applicant, his or her public reputation, business experience, his or her commitment and, to a lesser extent, determining his or her financial situation. Under this program, SBA special intermediaries, working with the entrepreneur, carry out a preliminary assessment of the loan applicant in order to justify the reliability of the borrower. Such an assessment is based on the determination of financial indicators of entrepreneurial activity, credit history and business experience, as well as on the conditions for repaying a loan. This program is coordinated by the SBA’s Office of Field Operations.

Clients: Small enterprises owned by women, representatives of national minorities, veterans and exporting enterprises. Small enterprises in rural areas, as well as enterprises of certain industries located in certain geographical areas of the country.

Services are provided by non-profit intermediary organizations, such as small business development centers and licensed companies for the development of territories located in certain geographical areas of the country.

Microloan, a 7(m) Loan Program

The program is about providing short-term loans to small enterprises up to $25,000 for the creation or replenishment of working capital or for the purchase of inventory, equipment and materials, furniture, equipment and tools. Under this program, borrowers cannot use loans to pay off current debts or to buy real estate. SBA defines a group of authorized non-profit organizations that are entitled to provide such microloans, as well as provide organizational and technical assistance to the MP. Such microloans are not guaranteed by SBA. A microcredit program operates in selected areas of most states.

Clients: small businesses and non-profit child care centers that need little financial and technical assistance to open and further develop.

Services are provided by intermediary lenders (non-profit organizations with experience in lending and technical assistance).

Certified Development Company (CDC), a 504 Loan Program

This program provides long-term financing of small enterprises at solid discount rates for the purchase of real estate, equipment and / or for the modernization and expansion of activities. Such operations are carried out under the terms of the “Credit Program 504”, under which, loans are given either on the security of a private lender with a priority right to retain the property of the debtor or on the security of the lender with a secondary right to hold the property of the debtor represented by CDC (having a 100% SBA guarantee on debt obligations). Moreover, the CDC provides up to 40% of the total cost of the loan, requiring a pledge of at least 10% of the borrower’s shares. At the same time, SBA provides guarantees only for debt instruments in the amount of up to $1 million. Within the framework of this program, it is possible to attract finance through the DELTA program.

Clients: Small enterprises mainly in need of financing for construction or reconstruction.

Services are provided by licensed development companies – CDC (private, non-profit corporations created in separate settlements or in areas for their economic development).

Franchise Registry

The program reduces the lengthy process of searching and evaluating existing or prospective franchisees – applicants for financial support from SBA. The registry allows SBA specialists and partner credit organizations to identify such franchisees online.

Clients: any company specializing in entrepreneurship, based on franchising.

Services are provided: via the Internet on the website: www.franchiseregistry.com.

Small Business Investment Company – SBIC

The program aims to provide financial assistance to SMEs in the form of the provision of equity, long-term loans, debt investment obligations, as well as financial management. Such assistance is provided mainly during the period of growth and development of small enterprises. SBA licenses SBICs and provides them with financial resources in the form of government guarantees for debt obligations or equity guarantees of securities. SBICs are private commercial companies specializing in investment activities in order to participate in future profits from the successful activities of invested enterprises and their further development. The amount of state guarantees for fiscal year 2006 under this program will be $3 billion, and the total volume of working capital will exceed $23.6 billion.

Consumers: small enterprises in need of long-term investment.

Services are provided by: about 450 small business investment companies located throughout the country.

Specialized Small Business Investment Company – SSBIC

The program is intended to provide financial assistance to small entrepreneurs who come from socially and economically disadvantaged groups of the population. Such assistance is provided in the form of equity, long-term loans, debt investment obligations, as well as in financial management, mainly during the period of growth and development of small enterprises. The SSBIC subprogramme is an important component of the SBIC program, which distributes 1/3 of the financial resources. The SSBIC routine usually allocates less investment compared to the SBIC program.

Clients: socially and economically disadvantaged small enterprises in need of long-term investments.

Services are provided by: specialized investment companies of small business.

Angel Capital Electronic Network – ACE-Net

The program gives small enterprises the opportunity to search for sources of equity financing of equity capital from $250,000 to $5 million provided by voluntary investors through access to a secure system of specialized services via the Internet. For ACE-Net accreditation and unlimited access to specialized services, interested investors and small business owners pay an annual fee of $450. ACE-Net users have access to constantly updated databases of potential investors and investment offers. Investors and entrepreneurs can search for possible partners in the ACE-Net network, negotiate, and consult on the size and terms of equity financing. ACE-Net works in partnership with SBA’s Office of Advocacy and many non-profit organizations throughout the country. ACE-Net’s regional and local operators are non-profit organizations specializing in entrepreneurial training and economic development, supported by universities and government at various levels. Over the past 4 years, the ACE-Net network has enabled 2500 small businesses to raise over $4 billion for the establishment and expansion of the business.

Clients: entrepreneurs and voluntary investors.

Services are provided through the SBA portal (www.sba.gov), or through www.sba.gov/advo/acenet.html, or through www.ace-net.org.

Surety Bond Guarantee

The program allows you to obtain guarantees, sureties or bonds payable for insurance coverage of contracts worth up to $1.25 million to those small enterprises that cannot receive such security through regular commercial channels. In accordance with the law, when concluding any government contract worth more than $100,000, the general contractor is obliged to send the corresponding guarantee obligations to state bodies to ensure compensation payments in case of failure to fulfill contractual obligations by the contractor. In addition, similar guarantees are also required in many regions, states, cities, and municipalities of a country. In this regard, the contractor should contact the guarantor. SBA can be such a guarantor, while SBA obligations are sent to the company that acts as a guarantor for this contract.

Clients: small business contractors, surety and insurance companies and their agencies, federal and regional agencies, government insurance departments, federal and regional government enforcement agencies.

Services are provided by surety and insurance companies and their agencies, as well as four regional branches of SBA.

Breakout Procurement

The program aims to expand the historically developed narrow circle of suppliers of aggregates, components, components and spare parts for state orders. This allows you to create and improve a competitive environment, as well as achieve significant budget savings.

Clients: federal agencies, large and small enterprises.

The program is implemented by representatives of the SBA center to expand the circle of suppliers.

Prime Contracting

The program helps empower small businesses to provide supplies to the federal government. This is done by identifying new small enterprises from the standpoint of the possibility of attracting them to implement government orders. Such enterprises are being consulted on the peculiarities of interaction with federal government bodies, on the supplier’s compliance with certain requirements for state orders executors. In addition, on the basis of the Law on Small Business, special supervision of the activities of such enterprises is carried out.

Clients: small enterprises and various federal agencies.

The program is implemented by representatives of the SBA center to expand the circle of suppliers.

Subcontracting

The program provides the opportunity for maximum participation of small businesses in the implementation of federal orders as subcontractors or suppliers.

Clients: large and small enterprises, various federal agencies.

The program is implemented by representatives of the SBA Center for Market Policy.

Certificate of Competency – СоС

The program consists in certification of small enterprises, which confirms their ability to fulfill government orders and helps them ensure the receipt of state contracts. Certified enterprises have the right to appeal to the relevant authorities in case of unreasonable refusal of such contracts due to insufficient “responsibility” or inability to satisfy customer requirements.

Clients: small enterprises that were refused state orders due to their possible inability to meet customer requirements.

The program is implemented by local SBA offices and specialists in manufacturing and finance.

Women-Owned Business Procurement

Using multidimensional assistance and training programs, the program allows women entrepreneurs to be taught how to work on the federal government order market.

Clients: women’s small businesses.

The program is implemented by the SBA Department of Government Contracts, www.sba.gov/gc/wbpprgm.html.

Procurement Marketing & Access Network – PRO-Net

The program is a specialized system for searching on the Internet for information on possible supplies and suppliers for contracting services and small enterprises. PRO-Net contains business information about many thousands of small businesses and at the same time provides operational communication with the Commerce Business Daily, the websites of Federal agencies and other sources of information about possible deliveries. PRO-Net is managed by SBA’s Department of Government Contracts. User registration for the PRO-Net system is free.

Clients: Government contract placement officers, small enterprises seeking government orders, federal and other large contractors. Women’s small enterprises.

Users can work: through the home page of the SBA website – www.sba.gov in the Offices & Services section, or on the website www.pronet.sba.gov

Sub-Net

The program is a continuation of the PRO-Net program and was originally used by general contractors to inform potential subcontractors of possible business offers for small enterprises. Currently, Sub-Net is used as a means of exchanging information (consultations, announcements, etc.) between federal agencies, state and municipal administrations, small enterprises, colleges and universities.

Clients: government contract placement officials, small businesses seeking government contracts; federal, regional and local administrative authorities; large general contractors; non-profit organizations; colleges and universities.

Users can work: through the home page www.pronet.sba.gov.

Trade Mission Online – TM Online

The program is a real-time information retrieval system for expanding foreign trade opportunities. This system contains information about American small businesses seeking opportunities to export their goods and services. In addition, it allows you to search for foreign companies interested in establishing business relations with American partners through direct sales, license agreements or on the basis of a franchise. Clients: American exporters from the small business sector and foreign companies seeking American business partners.

The program is implemented through SBA’s Department of International Trade (www.sba.gov/tmonline).

Small Business Size Standards

The program is used to identify those enterprises that meet the criteria of small enterprises. The SBA Small Business Standardization Department develops and prepares regulations and regulations on standard sizes of small enterprises, in accordance with SBA procedures and the requirements of the federal government. Such standards make it possible to clearly determine which enterprises are eligible for financial assistance or support in obtaining government orders for SBA programs.

Users: small enterprises, large and small contractors for the implementation of federal contracts, federal agencies and financial institutions.

The program is being implemented by the SBA Small Business Standardization Unit.

HUBZone Empowerment Contracting

The program is aimed at accelerating the economic development of historically underdeveloped zones (HUBZones). This is achieved by the preferred placement of government orders at small enterprises located in such zones. After establishing the affiliation of small businesses to such zones, information about these enterprises is entered into the PRO-Net database.

Users: small enterprises located in historically underdeveloped areas.

The program is being implemented: by the SBA department for placing government orders in historically underdeveloped zones (www.sba.gov/hubzone).

Small Business Innovation Research – SBIR

The program serves to promote innovative ideas of small business at the I and II stages of competitions for state contracts for special research and R&D for federal agencies. At the III stage of such competitions, the most successful innovative developments are won by contracts for commercialization and practical implementation in production. The SBIR program is coordinated by the SBA’s Office of Technology.

Users: innovative small businesses interested in competition for federal R&D contracts.

The program is being implemented: with the participation of 10 federal agencies, each of which has a R&D budget of up to $ 100 million (www.sba.gov/sbir).

Small Business Technology Transfer – STTR

The program encourages SMEs competing for the right to participate in federal R&D projects to interact with nonprofit research institutes. This program promotes the creation of joint ventures and / or temporary associations focused on developing initial ideas and bringing it to completion. The program is coordinated by the SBA’s Office of Technology.

Clients: innovative SMEs specializing in R&D.

The program is implemented by: 5 partner federal agencies, with additional R&D budgets of over $ 1 billion, including: National Space Research Agency (NASA); National Science Foundation; Ministry of Defence; Ministry of Energy, Ministry of Health and Social Welfare.

Small Business Research, R&D Goaling

The program serves to summarize the annual assessment of federal investment in research and R&D carried out in the private sector and their performance (excluding funding for SBIR and STTR programs). Such investments are made by placing R&D contracts in the small business sector, which are offered on a competitive basis by leading federal research agencies. This program is coordinated by the SBA’s Office of Technology.

Clients: small enterprises participating in tenders for the right to fulfill federal R&D contracts.

The program is implemented by: 18 federal agencies, each of which has an annual R&D budget of up to $ 20 million.

Small Business Development Center – SBDC

The program aims to create a network of small business development centers (SBDC). These centers provide counseling, training, technical assistance and management services to current and emerging owners of small enterprises. This program is coordinated by the SBA and brings together the efforts of the private sector, the educational sector and administrative authorities at various levels (federal, regional and local).

Clients: people who intend to do business, start-up entrepreneurs and operating MPs.

The program is implemented by more than 1000 organizations that operate in various places of the country, including universities, colleges, state and private organizations (www.sba.gov/sbdc).

Business Information Center – BIC

The program provides the application of the latest high-tech methods of work in small businesses based on the use of modern equipment, communication systems and software. These centers provide counseling and training for beginners and current entrepreneurs through the Corps of Retired Executives (SCORE) and consultants from other partner and public organizations working with SBA.

Clients: people who intend to do business, start-up entrepreneurs and operating small businesses.

The program is being implemented in 80 different regions of the country (www.sba / gov / bi / bics).

Service Corps of Retired Executives – SCORE

The program offers a system of free counseling and training for beginners and current entrepreneurs at various stages of development of their enterprises. SCORE consultants are partly funded by the SBA. In addition, specialized consultations and training are provided by the following organizations:

“Assistance for Armed Forces Veterans”;
“Support for Exporters”;
“Assistance for Native Americans”;
“Assistance for small and disadvantaged businesses;
“Assistance for Women”.

Clients: People intending to do business, start-up entrepreneurs and operating small businesses.

The program is implemented by 11,500 voluntary consultants working with 389 centers in various regions of the country (www.sba / gov / bi / bics).

Answer Desk

The program is a computerized nationwide, free system for answering entrepreneurs’ questions. The system operates around the clock 7 days a week. Specialized consultations are provided on weekdays from 9 to 17 hours.

Clients: the entire population of the country.

Service is provided: toll-free: 1-800 U ASK SBA.

Publications

The program provides free access to print publications on entrepreneurship issues (catalogs, manuals, information materials, descriptions of support programs for SMEs, legislative acts, etc.) through local SBA offices and through the Telephone Service for Answers and Consultations.

Clients: the entire population of the country.

Services are provided by: local SBA offices, the Telephone Response and Consultation Service, partner organizations of the SBA, and the federal Consumer Information Center www.sba.gov/library.

SBA OnLine

The program provides fast and easily accessible services to entrepreneurs in real time through a computerized electronic newsletter, working 23 hours a day and 7 days a week. SBA OnLine constantly offers the company reliable and up-to-date information in the following areas:

All SBA publications, conditions for access to SBA programs and services, as well as details of all SBA offices, branches and representative offices;
Schedules of various local events related to the activities of the MP;
Distance learning and practical exercises in real time;
Details of various federal agencies;
Prompt customer service and providing them with various data;
The provision of email and communication services over Internet channels;
Providing information exchange between various groups of entrepreneurs;
Access to databases and files on the subject of SMEs.
Clients: The entire population of the country.

Access is provided through 7 telephone and electronic communication channels including: www.sba.gov, gopher.sba.gov, telnet.sba.gov, www.business.gov.

SBA Home Page

The program is an electronic summary and detailed information about all SBA programs, services and activities. Here you can find information about local organizations and their resources, about other business services, as well as access to the network:

SBA OnLine, Ace-Net, PRO-Net;
The National Business Consulting System (the U.S. Business Advisor).

In addition, you can access many other sites on the Internet.

Clients: the entire population of the country.

Internet address: www.sba.gov.

Small Business Classroom

The program is an easily accessible electronic system of training courses for entrepreneurs, broadcast 24 hours a day on the Internet. The following directions are presented in the training program:

How to create a small business;
Development of a business plan;
Development of your enterprise;
Opportunities of small enterprises in obtaining government orders.

The training program is regularly updated and expanded. The site of this program provides a calendar of training events held in various places of the country and sponsored by SBA.

Clients: the entire population of the country.

Internet address: www.sba.gov/classroom.

U.S. Business Advisor

The program provides comprehensive electronic communications with government agencies providing business and information services. At the same time, there is no need for direct appeals of entrepreneurs to many agencies and various departments in order to gain access to legal and regulatory acts. In addition, the need to develop their own line of behavior when interacting with these structures is eliminated. Using the system of business consulting, an entrepreneur can send the necessary business papers through the www.business.gov website at once across the whole set of organizations to carry out all procedural actions.

Clients: the entire population of the country. Internet address: www.business.gov.

The SBA Disaster Assistance Program

The program is coordinated by the Disaster Relief Department. This program is mainly financed from the federal budget and is intended for long-term lending to restoration work in the private business sector with the exception of agricultural enterprises. The size of such loans is based on certain financial criteria for assessing the affected property. The interest rate on such loans ranges from 4% for borrowers who do not have other opportunities for obtaining a loan and reaches a maximum of 8% for borrowers with wide opportunities for obtaining loans from other sources. In addition to the US President’s Declaration of Compensation for a Disaster, this program does not come into force unless directed by the SBA Manager. Under this program, there are three disaster lending routines:

Loans for the restoration of households and personal property;
Loans to eliminate physical damage to enterprises of any size;
Loans to compensate for economic damage to small enterprises that do not have other lending opportunities.

Real Property Loan

The subprogram provides eligible homeowners who have suffered damage to uninsured property worth up to $200,000 with a long-term loan of sufficient size to repair or restore the home to the state prior to the disaster. The loan amount can be increased up to 20% if the owner protects his property from a possible similar disaster in the future.

Clients: private individuals.