The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.
Uses and Use Restrictions
Recipients are SBA approved New Markets Venture Capital Companies (NMVCCs) that use funds from debentures guaranteed by SBA to make equity capital investments in smaller enterprises located in low-income geographic areas.
Recipients use OA grant funds to provide management and technical assistance to smaller enterprises in which they intend or make such investments.
Recipients must not use grant funds for their own general and administrative expenses.
Term of guaranteed debenture is up to 10 years, with no payments required in years 1 to 5, interest only payments due semi- annually in years 6 to 10, and a balloon repayment of principal due at maturity.
Cost is approximately 100 basis points over comparable U. S. Treasury Securities.
Prepayment is allowed without penalty after year 1.
No new funding will be requested for this program.
Aplication and Award Process
This program is excluded from coverage under E.O.
Small Business Investment Act of 1958, as amended, Title III, Part B, Sections 351-368; 15 U.S.C. 689 - 689q.
Range of Approval/Disapproval Time
Formula and Matching Requirements
Length and Time Phasing of Assistance
Post Assistance Requirements
SBA will request financial information including, but not limited to, financial statements, economic impact and community development information, and portfolio financing reports and valuations.
SBA will require both annual and quarterly reports.
SBA will require an annual financial report performed by an independent public accountant and an annual examination performed by SBA's internal examiners.
Appropriate records as needed for requirements of 111 and 112.
Guarantees (Loans) 73-1154-0-1-376;
Operational Assistance grants (Grants) 73-0100-0-1-376.
Administrative: FY 07 $210,000; FY 08 $242,000; FY 09 $251,000.
Range and Average of Financial Assistance
Regulations, Guidelines, and Literature
13 CFR Part 108.
Regional or Local Office
SBA, Investment Division, New Markets Venture Capital Program, 409 3rd Street, N.W., Suite 6300, Washington, DC 20416. Telephone: (202) 205-6510.
Criteria for Selecting Proposals
Equity venture capital finance experience, community development finance experience, Federal grant administration experience and technical assistance experience.
The Bank of America Merrill Lynch themselves, Social Finance Inc., New York State, the Center for Employment Opportunities (CEO), the U.S. Department of Labor, Chesapeake Research Associates, and The Rockefeller Foundation come together to address recidivism by training and employing ex-inmates.