The Small Business Administration (SBA) has unveiled a new working capital loan initiative to support small businesses. This initiative follows the introduction of the Working Capital Pilot Program for 7(a) lenders, which offers flexible fee structures, rates, and terms. The new loan options include transaction-based loans for specific projects or orders and asset-based loans that provide access to funds against business assets.
Small business owners can access more information and apply through the SBA website or use the “Lender Match” tool to connect with local lenders.
In addition to the working capital loans, the SBA has introduced several updates to further benefit business owners and lenders:
- Green Lender Initiative: This initiative under the Community Advantage program supports energy efficiency and renewable energy projects. The maximum loan size has increased to $500,000, with plans to expand further for climate-related projects. Businesses can also access funds from the Environmental Protection Agency’s $27 billion Greenhouse Gas Reduction Fund.
- Geographic Expansion: The SBA is developing an application process that will allow lenders to expand their geographic reach and increase loan sizes.
- New Fee Notices: The 7(a) Fee Notice, 504 Fee Notice, and Working Capital Pilot (WCP) Fee Notice provide updated fee structures.
The SBA is also addressing challenges related to defaults on Covid-19 Economic Injury Disaster Loans, seeking assistance from business owners and creditors to liquidate surplus equipment.
Additionally, organizations have until August 15 to apply for the Cyber Prize Competition, which offers $350,000 to develop a national cyber certification program for SBA resource partners, including Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), SCORE, and Veterans Business Outreach Centers (VBOCs).
Recent SBA initiatives include:
- PRIME Grant Awards: $7 million awarded to 28 recipients for the 2024 Program for Investment in Microentrepreneurs (PRIME).
- Business Resilience Guide: A new resource for disaster preparation.
- MySBA Certifications: A streamlined process for managing multiple federal contracting certifications.
These updates reflect the SBA’s continued commitment to enhancing support for small businesses through innovative programs and resources.
