Connecting Constituents with Federal Assistance for Businesses
Updated June 6, 2024
Connecting Constituents with Federal Assistance for Businesses
Federal agencies assist businesses through a number of
SBA loan programs include the following:
credit and technical assistance programs. With some
exceptions, the federal government typically does not award
• The 7(a) loan guaranty program provides financing of
grants for starting or expanding a for-profit business.
up to $5 million to small businesses for a variety of
Exceptions include certain federal grants that may be
business needs, including establishing a business or
available for businesses involved in research and
assisting with the operation, acquisition, or expansion of
development (R&D) activities (e.g., the Small Business
an existing business. These loans are made by private
Research Programs) or healthy food initiatives (e.g., the
lenders, often banks or credit unions.
Health Food Finance Initiative).
• The 504 loan program provides financing of up to $5.5
This In Focus includes a summary of selected federal
million to small businesses for the purchase or
agencies and programs that provide business assistance
construction of fixed assets, such as land, buildings, or
such as loans, business counseling, and other forms of
machinery.
technical assistance. Note that these programs vary in scope
and funding levels, and that their relevancy to meeting the
• The Microloan program provides financing for smaller
needs of specific businesses also varies. This In Focus does
projects up to $50,000 for the acquisition of materials,
not represent a comprehensive list of all potentially relevant
supplies, or equipment. Microloans are provided by
federal assistance programs for businesses, nor does it
intermediaries (typically community development
cover federal procurement regulations (federal contracting
nonprofits) and are targeted toward disadvantaged
preferences) and tax policies (incentives).
entrepreneurs.
Small Business Administration (SBA)
U.S. Department of Agriculture (USDA)
The SBA administers several types of programs to support
Rural Development (RD)
small businesses.
The USDA Office of Rural Development administers grant
•
and loan programs through rural public entities to assist
Business development specialists at the local district
small rural businesses. Eligibility may depend on a variety
offices offer counseling and training to help
of program factors, including the business location and size
entrepreneurs start and grow a business.
of the community. Rural areas are defined as areas with a
•
population of fewer than 50,000 inhabitants and not
The SBA works with a nationwide network of local
adjacent to cities of more than 50,000 inhabitants.
resource providers to provide free or low-cost
Businesses may reach out to their local USDA Rural
management and technical assistance and one-on-one
Development office for more information. Selected USDA
counseling to entrepreneurs interested in starting or
programs and initiatives include the following:
operating a small business. These services are provided
by Small Business Development Centers, Veterans
• The Rural Microentrepreneur Assistance Program
Business Outreach Centers, and Women’s Business
provides loans and grants to Microenterprise
Centers.
Development Organizations that then provide loans to
•
small rural businesses (i.e., businesses with 10 or fewer
The SBA also provides a business guide with a variety
full-time employees).
of online resources on starting, operating, and growing a
business.
• The Business and Industry Loan Guarantees
•
Program offers loan guarantees to qualified lenders so
For businesses that are veteran-owned, minority-owned,
they can make loans to rural businesses. For-profit rural
Native American-owned, women-owned, or LGBT-
businesses can apply to lenders for loans. Loan funds
owned, the SBA provides these online resources, see the
can be used for the development of land, buildings, and
categories of businesses at the left.
associated infrastructure for commercial properties.
• 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.
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Connecting Constituents with Federal Assistance for Businesses
U.S. Department of Housing and Urban
production processes, upgrade capabilities, and facilitate
Development (HUD) Community
product innovation. Businesses can check with their local
MEP center to inquire about services.
Development Block Grants (CDBG)
Constituents may inquire about possible federal HUD
U.S. Department of Veterans Affairs Office of
CDBG funding, which can support a wide range of
Small and Disadvantaged Business Utilization
activities, including economic development assistance for
The U.S. Department of Veterans Affairs Office of Small
businesses. CDBG funds are awarded to states, local
and Disadvantaged Business Utilization may be of interest
governments, and insular areas. These grantees have some
to veteran-owned businesses.
flexibility in administering CDBG funds.
R&D Assistance for Small Businesses
Additional Technical and Credit
Assistance Programs
The Small Business Innovation Research (SBIR) and Small
Business Technology Transfer (STTR) grant programs are
designed to expand the role of small businesses in federal
U.S. Department of the Treasury’s Community
R&D. SBIR and STTR awards go to small businesses to
Development Financial Institution (CDFI) Fund
develop and commercialize innovative technologies. Eleven
The CDFI Fund certifies eligible banks and nonbanks with
federal agencies operate SBIR programs, and five federal
a CDFI designation, which makes them eligible for
agencies operate STTR programs.
financial awards and other assistance to provide loans to
businesses and community developers in distressed areas.
Additional Resources
Here is a link to a list of CDFIs that operate lending
Businesses may wish to consult the following additional
programs for businesses, select the link to the Excel file
(XLSX) at “View the list of certified CDFIs.”
potential sources of funding or training:
•
Economic Development Administration (EDA)
State agencies are often involved in administering grants
and incentives for economic development purposes.
EDA does not make grants directly to businesses. However,
Constituents may want to contact their state economic
businesses may be eligible to receive a loan from an EDA
development organization for additional assistance,
grantee (e.g., the intermediary lending organization) that is
incentives, or loan options.
operating a revolving loan fund (RLF). For direct
assistance, businesses may view the directory of RLF
• The resources at USA.gov broadly identify what
programs, by state.
government financing programs may be available to
help finance an existing business. One feature offered is
Minority Business Development Agency (MBDA)
a “loan finder” tool.
For minority business enterprises, the MBDA provides
management and technical assistance through a network of
• To request federal surplus property, businesses may
minority business centers and other initiatives. According to
consult the General Services Administration (GSA)
MBDA, the business centers “provide minority
website. Historically, this was not available to
entrepreneurs with one-on-one assistance in writing
businesses, but there are exceptions. See the state
business plans, marketing, management, and technical
contacts to make inquiries.
assistance and financial planning”. The MBDA’s directory
includes the location and contact information for MBDA
• SCORE, an SBA partner organization, is a nonprofit
Business Centers.
association dedicated to helping nonprofits and small
businesses achieve their goals through education and
National Institute of Standards and Technology’s
mentorship.
(NIST’s) Manufacturing Extension Partnership
(MEP)
NIST’s MEP is a national network of centers located in
Maura Mullins, Senior Research Librarian
every state and Puerto Rico. MEP centers provide services
IF12449
to small and medium-sized manufacturers to improve
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Connecting Constituents with Federal Assistance for Businesses
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https://crsreports.congress.gov | IF12449 · VERSION 7 · UPDATED