As the most comprehensive resource available for those involved in technology-based economic development, SSTI offers the services that are needed to help build tech-based economies. Learn more about membership...
Expanding Access to Capital
Department of Treasury
ARRA includes $100 million in new funding for the Department of Treasury's Community Development Financial Institutions (CDFI) Fund program. The program provides financial assistance to locally-based organizations engaged in building regional economies, increasing the availability of affordable housing or offering basic banking services in underserved communities. Treasury uses a number of programs to carry out this mission, including the Bank Enterprise Award program, the CDFI program, New Markets Tax Credits (NMTCs), Native American CDFI Assistance and certification programs for CDFI's and community development entities (CDEs).
In addition to the new funding, ARRA also increases the maximum amount of qualified equity investments to be made through the NMTC program by $1.5 billion in both calendars years 2008 and 2009. The 2008 funding is reserved for qualified CDEs that submitted an application in 2008, but did not receive an allocation.
Another $8 million has been reserved for financial assistance, technical assistance, training and outreach programs for Native American, Native Hawaiian and Alaskan Native communities.
A Senate amendment to the bill expands the definition of private business manufacturing facilities to make Industrial Development Bonds (IDBs) available to facilities that create intangible properties. This change, advocated by the Council of Development Finance Agencies, will enable businesses that produce new technologies to receive IDBs.
Small Business Administration
The Small Business Administration (SBA) will receive $730 million in funding for operations and programs through ARRA. The majority of this allocation, $636 million, will fund the Business Loans Program for direct loans and fee reductions. SBA's Microloan program will receive $6 million of this funding to provide small direct loans to new businesses. The remaining $630 million will be used to implement fee reductions on the 7(a) Loan Guarantee program and the 504 Loan program and extend SBA's loan guarantee authorities.
Other provisions allow SBA to provide loans on a deferred basis to viable small business that have a qualified loan and are experiencing immediate financial hardship and create a SBA Secondary Market Guarantee Authority to guarantee pools of first lien 504 loans that are to be sold to third-party investors.