July 11, 2023
Connecting Constituents with Federal Assistance for Businesses
Federal agencies assist businesses through a number of
Interested borrowers can search for a lender using
credit and technical assistance programs. With some
SBA’s “Lender Match” tool: https://www.sba.gov/
exceptions, the federal government typically does not award
funding-programs/loans/lender-match-connects-you-
grants for starting or expanding a for-profit business.
lenders.
Exceptions include certain federal grants that may be
available for businesses involved in research and
SBA loan programs include the following:
development (R&D) activities (e.g., the Small Business
Research Programs) or healthy food initiatives (e.g., the
• The 7(a) loan guaranty program provides financing of
Health Food Finance Initiative).
up to $5 million to small businesses for a variety of
business needs, including establishing a business or
This In Focus includes a summary of selected federal
assisting with the operation, acquisition, or expansion of
agencies and programs that provide business assistance
an existing business. These loans are made by private
such as loans, business counseling, and other forms of
lenders, often banks or credit unions:
technical assistance. Note that these programs vary in scope
https://www.sba.gov/partners/lenders/7a-loan-program/
and funding levels, and that their relevancy to meeting the
types-7a-loans.
needs of specific businesses also varies. This In Focus does
not represent a comprehensive list of all potentially relevant
• The 504 loan program provides financing of up to $5.5
federal assistance programs for businesses, nor does it
million to small businesses for the purchase or
cover federal procurement regulations (federal contracting
construction of fixed assets, such as land, buildings, or
preferences) and tax policies (incentives).
machinery: https://www.sba.gov/funding-programs/
loans/504-loans.
Small Business Administration (SBA)
The SBA administers several types of programs to support
• The Microloan program provides financing for smaller
small businesses.
projects up to $50,000 for the acquisition of materials,
supplies, or equipment. Microloans are provided by
• Business development specialists at the local district
intermediaries (typically community development
offices offer counseling and training to help
nonprofits) and are targeted toward disadvantaged
entrepreneurs start and grow a business:
entrepreneurs: https://www.sba.gov/funding-programs/
https://www.sba.gov/local-assistance/find.
loans/microloans.
• The SBA works with a nationwide network of local
• The Community Advantage loan program works with
resource providers to provide free or low-cost
nontraditional and mission-oriented lenders to increase
management and technical assistance and one-on-one
lending: https://www.sba.gov/partners/lenders/7a-loan-
counseling to entrepreneurs interested in starting or
program/pilot-loan-programs.
operating a small business. These services are provided
by Small Business Development Centers, Veterans
U.S. Department of Agriculture (USDA)
Business Outreach Centers, and Women’s Business
Rural Development (RD)
Centers: https://www.sba.gov/local-assistance/resource-
The USDA Office of Rural Development administers grant
partners.
and loan programs through rural public entities to assist
small rural businesses. Eligibility may depend on a variety
• The SBA also provides a variety of online resources on
of program factors, including the business location and size
starting, operating, and growing a business:
of the community. Rural areas are defined as areas with a
https://www.sba.gov/business-guide.
population of fewer than 50,000 inhabitants and not
adjacent to cities of more than 50,000 inhabitants.
• For businesses that are veteran-owned, minority-owned,
Businesses may reach out to their local USDA Rural
Native American-owned, women-owned, or LGBT-
Development office for more information:
owned, the SBA provides online resources:
https://www.rd.usda.gov/about-rd/state-offices. Selected
https://www.sba.gov/business-guide/grow-your-
USDA programs and initiatives include the following:
business/get-more-funding, see the categories of
businesses at the left.
• The Rural Microentrepreneur Assistance Program
provides loans and grants to Microenterprise
• While the SBA does not typically offer grants for
Development Organizations that then provide loans to
starting or expanding a business, loans may be an
small rural businesses (i.e., businesses with 10 or fewer
option: https://www.sba.gov/funding-programs.
full-time employees): https://www.rd.usda.gov/
https://crsreports.congress.gov

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Connecting Constituents with Federal Assistance for Businesses
programs-services/business-programs/rural-
National Institute of Standards and Technology’s
microentrepreneur-assistance-program.
(NIST’s) Manufacturing Extension Partnership
(MEP)
• The Business and Industry Loan Guarantees
NIST’s MEP is a national network of centers located in
Program offers loan guarantees to qualified lenders so
every state and Puerto Rico. MEP centers provide services
they can make loans to rural businesses. For-profit rural
to small and medium-sized manufacturers to improve
businesses can apply to lenders for loans. Loan funds
production processes, upgrade capabilities, and facilitate
can be used for the development of land, buildings, and
product innovation. Businesses can check with their local
associated infrastructure for commercial properties:
MEP center to inquire about services: https://www.nist.gov/
https://www.rd.usda.gov/programs-services/business-
mep/centers.
programs/business-industry-loan-guarantees.
U.S. Department of Veterans Affairs Office of
U.S. Department of Housing and Urban
Small and Disadvantaged Business Utilization
Development (HUD) Community
The U.S. Department of Veterans Affairs Office of Small
Development Block Grants (CDBG)
and Disadvantaged Business Utilization may be of interest
Constituents may inquire about possible federal HUD
to veteran-owned businesses: https://www.va.gov/OSDBU/
CDBG funding, which can support a wide range of
index.asp.
activities, including economic development assistance for
businesses. CDBG funds are awarded to states, local
R&D Assistance for Small Businesses
governments, and insular areas. These grantees have some
The Small Business Innovation Research (SBIR) and Small
flexibility in administering CDBG funds:
Business Technology Transfer (STTR) grant programs are
https://www.hud.gov/program_offices/comm_planning/
designed to expand the role of small businesses in federal
cdbg.
R&D. SBIR and STTR awards go to small businesses to
develop and commercialize innovative technologies. Eleven
Additional Technical and Credit
federal agencies operate SBIR programs, and five federal
Assistance Programs
agencies operate STTR programs: https://www.sbir.gov/
about.
U.S. Department of the Treasury’s Community
Development Financial Institution (CDFI) Fund
Additional Resources
The CDFI Fund certifies eligible banks and nonbanks with
Businesses may wish to consult the following additional
a CDFI designation, which makes them eligible for
potential sources of funding or training:
financial awards and other assistance to provide loans to
businesses and community developers in distressed areas.
• State agencies are often involved in administering grants
This link lists CDFIs that operate lending programs for
and incentives for economic development purposes.
businesses: https://www.cdfifund.gov/programs-training/
Constituents may want to contact their state economic
certification/cdfi, select the link to the Excel file (XLSX) at
development organization for additional assistance,
“View the list of certified CDFIs.”
incentives, or loan options: https://www.eda.gov/grant-
resources/economic-development-directory.
Economic Development Administration (EDA)
EDA does not make grants directly to businesses. However,
• The resources at USA.gov broadly identify what
businesses may be eligible to receive a loan from an EDA
government financing programs may be available to
grantee (e.g., the intermediary lending organization) that is
help finance an existing business: https://www.usa.gov/.
operating a revolving loan fund (RLF). For direct
One feature offered is a “loan finder” tool:
assistance, businesses may view the directory of RLF
https://www.govloans.gov/loan-finder/.
programs, by state: https://www.eda.gov/grant-resources/
economic-development-directory/.
• To request federal surplus property, businesses may
consult the General Services Administration (GSA)
Minority Business Development Agency (MBDA)
website: https://www.gsa.gov/buy-through-us/
For minority business enterprises, the MBDA provides
government-property-for-sale-or-disposal/personal-
management and technical assistance through a network of
property-for-reuse-sale/for-state-agencies-and-public-
minority business centers and other initiatives. According to
orgs/how-to-acquire-surplus-federal-personal-property.
MBDA, the business centers “provide minority
Historically, this was not available to businesses, but
entrepreneurs with one-on-one assistance in writing
there are exceptions. See the state contacts to make
business plans, marketing, management, and technical
inquiries: https://www.gsa.gov/buy-through-us/
assistance and financial planning”:
government-property-for-sale-or-disposal/personal-
https://archive.mbda.gov/page/who-mbda.html. The
property-for-reuse-sale/for-state-agencies-and-public-
MBDA’s directory includes the location and contact
orgs/state-agencies-for-surplus-property-sasp-contacts.
information for MBDA Business Centers:
https://www.mbda.gov/mbda-programs.
• SCORE, an SBA partner organization, is a nonprofit
association dedicated to helping nonprofits and small
businesses achieve their goals through education and
mentorship: https://www.score.org/.
https://crsreports.congress.gov

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Connecting Constituents with Federal Assistance for Businesses
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IF12449
Maura Mullins, Senior Research Librarian


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https://crsreports.congress.gov | IF12449 · VERSION 1 · NEW

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