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1 [1] (May 21, 2025)

handle is hein.crs/cngcnswhfd0001 and id is 1 raw text is: Congressional Research Servie Inforrning the legislative debate since 1914 S Updated May 21, 2025 Connecting Constituents with Federal Assistance for Businesses Federal agencies assist businesses through a number of credit and technical assistance programs. With few exceptions, the federal government typically does not award grants for starting or expanding a for-profit business. Limited exceptions include certain federal grants that may be available for businesses involved in research and development (R&D) activities (e.g., the Small Business Research Programs) or healthy food initiatives (e.g., the Health Food Finance Initiative). This In Focus includes a summary of selected federal agencies and programs that provide business assistance such as loans, business counseling, and other forms of technical assistance. Note that these programs vary in scope, funding levels, and availability, and that their relevancy to meeting the needs of specific businesses also varies. This In Focus does not represent a comprehensive list of all potentially relevant federal assistance programs for businesses, nor does it cover federal procurement regulations (federal contracting preferences) and tax policies (incentives). Small Business Administration (SBA) The SBA administers several types of programs to support small businesses. Business development specialists at the local district offices offer counseling and training to help entrepreneurs start and grow a business. • The SBA works with a nationwide network of local resource providers to provide free or low-cost management and technical assistance and one-on-one counseling to entrepreneurs interested in starting or operating a small business. These services are provided by Small Business Development Centers, Veterans Business Outreach Centers, and Women's Business Centers. • The SBA also provides a business guide with a variety of online resources on starting, operating, and growing a business. • For businesses that are women-owned, Native American-owned, veteran-owned, and minority-owned, the SBA provides these online resources; see the categories of businesses at the left. • While the SBA does not typically offer grants for starting or expanding a business, loans may be an option. Interested borrowers can search for a lender using SBA's Lender Match tool. SBA loan programs include the following: • The 7(a) loan guaranty program provides financing of up to $5 million to small businesses for a variety of business needs, including establishing a business or assisting with the operation, acquisition, or expansion of an existing business. These loans are made by private lenders, often banks or credit unions. • The 504 loan program provides financing of up to $5.5 million to small businesses for the purchase or construction of fixed assets, such as land, buildings, or machinery. • The Microloan program provides financing for smaller projects up to $50,000 for the acquisition of materials, supplies, or equipment. Microloans are provided by intermediaries (typically community development nonprofit organizations). U.S. Department ofAgriculture (USDA) Rural Development (RD) The USDA Office of Rural Development administers grant and loan programs through eligible entities to assist small rural businesses. Eligibility may depend on a variety of program factors, including the business location and size of the community. Rural areas are defined as areas with a population of fewer than 50,000 inhabitants and not adjacent to cities of more than 50,000 inhabitants. Businesses may reach out to their local USDA Rural Development office for more information. Selected USDA programs and initiatives include the following: • The Rural Microentrepreneur Assistance Program provides loans and grants to Microenterprise Development Organizations that then provide loans to small rural businesses (i.e., businesses with 10 or fewer full-time employees). • The Business and Industry Loan Guarantees Program offers loan guarantees to qualified lenders so they can make loans to rural businesses. For-profit rural businesses can apply to lenders for loans. Loan funds can be used for the development of land, buildings, and associated infrastructure for commercial properties. • The Intermediary Relending Program provides loans with a fixed interest rate of 1% to eligible local lenders or intermediaries that relend to qualified businesses to improve economic conditions and create jobs in rural communities. Nonprofits, federally recognized Tribes, and public agencies are eligible to apply to the program. Activities that can be funded to ultimate lenders include (1) acquiring, constructing, enlarging or repairing a https://crsreport

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