Earlier this year we shared exciting information about the U.S. Small Business Administration’s (SBA) growing partnership with the U.S. Department of Agriculture (USDA) in the support of rural small business development. Well, their support of increasing the economic power of rural communities does not end there. The SBA recognizes that rural areas have not been appropriately supported in a way that shines a spotlight on their importance to the American economic landscape or promotes economic advancement. There are several other resources and forms of support the SBA offers—and the more information shared about the options available the better!
Financing Options
According to the Center for American Progress, rural communities often have highly skilled workforces, but their lack of access to education, capital, and other resources causes them to be underserved by most economic growth plans. One of the ways the SBA works to turn the tide on how we treat rural economies is through access to funding—more capital in rural small businesses equates to more capacity building. Two SBA loan programs that can provide rural small business owners with the ability to grow their businesses are the following:
- 7(a) Loan Program—the SBA’s largest financial lending program that provides working capital to qualified small businesses who struggle to obtain conventional business loans. Qualified small businesses can receive up to $5 million in short or long-term capital that can be used to purchase land or real estate, purchase inventory, refinance current business debts, and more.
- 504 Loan Program—the SBA’s loan program that provides qualified small businesses with access to funding specifically for buying or improving real estate, purchasing equipment, and securing furniture and other necessary fixtures to grow the business. Small business owners interested in this program need to work with a local Certified Development Company—like Growth Capital—to pursue this program.
Both of these programs help provide equitable access to funding and professional insights that they otherwise might not have!
Assistance Programs
Along with providing access to monetary avenues for economic growth, the SBA also provides information about programs and opportunities that may benefit rural small businesses. Notable areas of assistance include—
- Export Assistance—small businesses that have been in operation for at least a year might qualify for the Export Working Capital Program. Exporting goods is a great way to grow a small business and bring in new sources of commerce from outside the community.
- HUBZones—qualified small businesses in underutilized and underserved business zones—like many rural communities—are given special access to available federal contracts through the HUBZone Program. This program is of great importance to the SBA, as there is an annual goal of at least 3% of federal contract dollars going to small businesses in these communities!
- Research & Development—because knowledge is power, there is no time like the present to pursue new and innovative ways to grow rural small businesses. There are billions of dollars available each year for research and development interests held by the country’s federal agencies—and small businesses with innovative ideas can get a piece of that pie! Through America’s Seed Fund, rural small businesses can compete for capital dollars that will help them create and innovate jobs and solutions to problems in their own communities—both of which spur economic growth!
Team Up with Growth Capital
If you are a rural small business owner—or you have plans to become one—we’d love to talk to you more about the resources and options available to you. We’ve been in the business of helping small businesses grow for over 40 years, and we’d love to partner with you as you take your next steps. Whether you need to learn about the options available to you or are ready to start filling out applications, we are here to help. Contact us today to get started!