Money is being devoted to the stimulation of small business. If you ever considered opening a new business or expanding your current business, the time is right. Grants, loans and tax incentives are available from the public sector, to stimulate the private sector, i.e. specifically small businesses.
How important are small businesses to the US economy?
Small businesses employ about half of U.S. workers. Of 120.6 million nonfarm private sector workers in 2007, small firms employed 59.9 million and large firms employed 60.7 million. (Source:U.S.Dept. of Commerce, Census Bureau: Statistics of U.S. Businesses, Current Population Survey and Business Dynamics Statistics; and the Edward Lowe Foundation)
Small firms accounted for 65 percent (or 9.8 million) of the 15 million net new jobs created between 1993 and 2009. (Source: U.S. Dept. of Labor, Bureau of Labor Statistics, Business Employment Dynamics; Advocacy-funded research by Zoltan Acs, William Parsons and Spencer Tracy, 2008)
In many cases, the federal government is providing money to states for their distribution. May 24, 2012 – “The U.S. Department of Labor today announced the availability of $35 million in funds to develop, enhance and promote Self-Employment Assistance programs in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.”
Programs exist in various shapes and sizes, depending on the state, but are consistent in the end goal of increasing employment and directing investment to certain geographies.
For example, the New Jersey Economic Development Authority (http://www.njeda.com) offers –
To cover operating expenses – Loans up to $750,000; and guarantees up to $1.5 mill for a total exposure of $2.25 mill.
To purchase or renovate a building, machinery or equipment to accommodate business growth and expansion – Loans up to $1.25 mill; loan guarantees up to $1.5 mill for a total exposure of $2.75 mill.
To grow a business located in an urban municipality – Loans of up to $2 mill for fixed assets to businesses in one of New Jersey’s urban areas. Loans of up to $3 mill with favorable rates for fixed assets to businesses in one of New Jersey’s nine designated urban areas (Atlantic City, Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson, Trenton).
To grow business by adding employees – Incentive grants to businesses creating at least 25 new jobs in New Jersey (10 jobs if in the technology or biotechnology sectors).
While the Connecticut Department of Economic and Community Development (www.decd.org) offers –
Revolving Loan Fund – Loans range from a minimum of $10,000 to a maximum of $100,000 to assist with capital and operational needs.
Job Creation Incentive Program – Loans range from a minimum of $10,000 to a maximum of $250,000 to spur growth. Amount may be forgiven if job growth achieved.
Creation Matching Grant Program – Grants are available at a minimum of $10,000 to a maximum of $100,000 to provide a dollar-for-dollar matching grant for specific job creation, capital investment and working capital goals.
What type of programs are offered in your state?© Copyright 2012 Regis Quirin, All rights Reserved. Written For: CFO Tips - What you need to know, to be a CFO TODAY!