Patriot Expres SBA Loans Are For More Than Veterans

Business Plans for Veterans

Veterans have been polishing up their business plans lately. Two years ago the SBA began its Patriot Express Pilot Loan Program. The goal was to assist military veterans and their spouses start or expand small businesses. The program recently surpassed the milestone of $300 million in money lent. It has gove to 3,750 veterans and their spouses.

First of all, who is eligible? Patriot Express loans are available to:

• Veterans;
• Active-duty service members eligible for the military's Transition Assistance Program;
• Reservists and National Guard members;
• Current spouses of any of the above; and
• The widowed spouse of a service member or veteran who died during service or of a service-connected disability.

I am glad that reservists and spouses are included in the program. They have given a great deal to our country as well.

The loans are not confined to existing businesses. The loans can be used to start up a small business, or can also go toward most business purposes, such as business expansion, working capital, or the purchase of equipment, inventory, or business occupied real estate.

While as much as $500,000 can be borrowed, the average loan amount is $85,000. Loans above $350,000 require the borrower to put up all available collateral.

Interest on the loans matches the interest on SBA 7(a) loans -- prime plus 2.25% if the loan matures in less than 7 years, or prime plus 2.75% if it mature in 7 or more years. Interest rates can be slightly higher if the loan amount is under $50,000.

Like all SBA loans, Patriot Express loans are made through participating private lenders. According to the SBA, April and May were record months for the program. The American Recovery and Assistance Act (ARRA) likely contributed by boosting the SBA backing for these loans to 90%.

The SBA also touts these loans, a streamlined version of its Express Loan program with better terms, the quickest loans for the SBA to turn around. Once the SBA gets an application from a lender, it purportedly turns it around within 24 hours.

The hitch in the whole program is that some banks just don't want the paperwork connected with the Patriot Loans. We still get messages from vets, especially those looking for smaller loans, who have having a great deal of trouble. My advice now is what it was when the problems first surfaced: contact your US Representative and Senator. Give them names/ dates/ experiences. Get them on your site. Few people are as well equipped to help out veterans than our representatives in Congress.

Jobs Is The Key To SBA 504 Loans

Keywords for this post:
Business plans for SBA

The Small Business Administration's 504 loan program has been around for nearly 30 years, and it can now be used to refinance your existing commercial real estate while it also funds your expansion.

The 504 program allows you to borrow up to 90 percent of your cost to build, buy or expand a commercial real estate building. The funds can also be used for capital equipment, furnishings, fixtures and fees incidental to the transaction. Examples of suitable real estate include owner-occupied, commercial condominiums, offices, warehouses, franchises, restaurants, car washes, bowling alleys and skating rinks. Investor-owned properties do not qualify.

But the reason for its existence is not to create commercial real estate. Its real reason for existence is job creation.

Traditionally, "for every $50,000 guaranteed by the SBA, (the borrowers) must be able to demonstrate that they are creating or retaining at least one job," says Karen Mills, SBA's administrator.

Right now, as part of the federal stimulus initiative, job creation has temporarily been relaxed to one job per $65,000.

The program is administered by about 270 certified development companies in a partnership with the commercial lenders and the SBA.

As with most new programs, the dibbuk is in the details. Accordingly, lenders and CDCs will be poring over SBA's procedural notice to understand the critical essentials.

Meanwhile, stay in touch with your banker, NADCO and its members for up-to-date information as the refinancing enhancement unfolds. See nadco.org for NADCO members and more about 504.

For more information, see the SBA website.

1 Billion Venture Capital Fund in UK !

The Prime Minister just announced the creation of the UK Innovation Investment Fund to invest in technology-based businesses with high growth potential. The new fund will focus on investing in growing small businesses, start-ups and spin-outs, in digital and life sciences, clean technology and advanced manufacturing.

The Department for Business, Innovation and Skills, with the Department of Energy and Climate Change and the Department of Health, will invest £150 million alongside private sector investment on an equal basis known as pari-passu.

It is the Government's belief that this could leverage enough private investment to build a fund of up to £1 billion over the next 10 years. The UK Innovation Investment Fund forms part of the Government’s strategy for Building Britain’s Future.

Gordon Brown said:
“This fund will help build Britain’s future by investing in key sectors. It will provide crucial support for our most promising start-ups and existing small companies just when they need it most. Venture capital finance is the lifeblood of innovation and crucial to ensuring the commercialisation of the discoveries coming out of our research base. The fund will boost future UK competitiveness.”

Many government create funds or otherwise spur technology industries, and it is great to see the UK putting some real clout into its own innovation.

Marketing Stats for Business Plans

Are you having a bit of trouble tracking down the demographic information you need for your area for your business plan? This is a real issue since a lot of information you will receive is definitely biased. We recently came across a very interesting site that might help out:

URL: www.citymelt.com

PURPOSE: Citymelt provides finely detailed demographic and statistical information on more than 50,000 towns, cities, and other regional segments of the U.S. The information is free.

SOURCE CHECK: Citymelt was launched in November 2007. The data itself is derived from the Bureau of the Census, IRS, National Weather Service, fee-based data providers, and various other firms that supply statistical information.

REVIEW: This site is still in beta. We've occasionally received the quirky or questionable result in a search, so we'd be a little careful.

The time frame for data sets is very inconsistent, some from several years ago.

We were most impressed with its coverage of very small towns, as well as the unique types of data available. Citymelt not only includes the usual stats on a locality (e.g., median age, income, race) but business-oriented data too such as biggest industries and occupations. It also has unusual data such as average time of arrival to work, modes of transportation, most common home fuel source, building permits issued, banks with most branches, and other interesting data points. We also liked the fact that we could either b rowse all the data aggregated for a selected town or city or use sliders to discover a region that fits our own criteria (e.g., area demographics, education level, weather).

Getting Your Hands on ARC Loans for Small Business

Keyword: SBA Business plans for small business

SBA Interest-free loans will give businesses “breathing room”

Many small businesses are now eligible for interest-free loans under a new program created by the American Recovery and Reinvestment Act (ARRA). The “America’s Recovery Capital” (ARC) program allows small firms to take out loans of $35,000 to pay down existing business debts. Borrowers pay no interest on the ARC loans and repayment does not begin for one year. The loan program was established through the Recovery Act, which the President signed into law in February.

To qualify for the ARC loans, small companies must demonstrate they are experiencing immediate financial hardship due to the economic downturn, but are otherwise deemed by the Small Business Administration (SBA) to be viable.

The loans will be made by commercial lenders and can be used for payments of principal and interest for existing, qualifying small business debts like credit card obligations, mortgages, lines of credit, and balances due to suppliers, vendors, and utilities. In addition to the ARC loan program, the Recovery Act contained other measures aimed at helping small firms access credit. For instance, the new law increases the percentage of a loan that the SBA can guarantee, makes SBA-backed loans more affordable and provides tools to unfreeze the small business credit markets, helping small companies access capital at affordable rates.

To apply for ARC loans, businesses should visit their local SBA-approved small business lenders. The loans will be available through Sept. 30, 2010, or until appropriated funding runs out. But it is not just a matter of putting together a business plan for SBA loan and taking it in.

Not surprisingly, there is a caveat to all this largess: Banks don't like lending small amounts of money, and many of them will discourage such lending, or even deny that they are part of the program, even with a strong business plan and a good track record.

So what do you do?

First, there is power in numbers. Gather together with like minded businesses in your area, put together a jiffy business plan demonstrating the clout of all of you together. Send one or two people as spokespeople to speak with local bankers. Find one that is friendly to your interests. And, if that bank will support you now, you should support that bank when times are better. It is only fair.

Second, there is power in who you know. If your local banks refuse to cooperate, contact your US Representatives and US Senators. Get them on your side. Most Representatives and Senators are well aware of the importance of small business to the local economy, and they WILL help you out.

I wish I had confidence in banks. But I don't. We get letters all the time from veterans who can't access veteran lending programs because the money is too little for banks to deal with, and I fear the same thing will happen with ARC funds. It is absolutely criminal. It is about time that banks helped out all small businesses that are eligible for funding.

Business Plan for Auto Dealers, RV Dealers, Manufactured Homes

There is help available for used car dealerships, recreational vehicle dealerships and manufactured home dealerships. If only lenders cooperate.

Under a program to begin July 1, the U.S. Small Business Administration will offer a 75 percent government guarantee on loans dealers take to buy inventory.

Loans for $500,000 to $2 million are available under the "floor plan" financing program, a piece of the stimulus package. The program is aimed primarily at independent used-car dealers, whose financing has largely dried up. But some of the dealers worry that lenders won't take part in the program, even with the guarantee.

Dealers typically stay in business by borrowing against their inventory to buy more inventory, then repaying the debt as they sell the cars. The SBA program sets up a line of credit enabling dealers to borrow what they need; it also enables them to borrow against the line of credit again as they pay it down. Mark Brandt, owner of Brandt Auto Brokers, an independent retail and wholesale dealership in Marietta, said the Birmingham, Ala., bank that has been financing his inventory and that of other dealerships has pulled out of floor planning. Other banks, he said, have declined to fill the gap.

Banks may or many not participate in the program. The loans will actually come from SBA approved banks, not from the SBA itself. The SBA is simply the guarantor.

The best approach would be to combine as a group to encourage your local bank to offer this type of loan, emphasizing the guarantee program. Then present individual business plans for each business. Some businesses will warrant this type of financing, and some won't. The stronger your individual presentation, the more likely it is that your business can be one of the fortunate ones.

Angel lnvestors -- Bless Them, Every One

Keywords for this post: Business plans for angel investors

In Utah, the man considered to be the top angel investor is Scott Frazier.

Frazier, a Utah native living in Salt Lake City, said he was surprised to be honored, but was grateful for the recognition. He said he has been investing in start-ups for 14 years since moving back to Utah from Minnesota, where he was a health-care company executive.

"Frankly, it's fairly hard to find a business to start yourself, so it's much easier to find somebody else that's got one that's got a great idea ... to just help them move it along.

Frazier works with about 30 companies, offering both cash and contacts -- two commodities that new companies desperately need. Even with his help, about half of his companies don't make it, a common event in early stage investing.

When talking with potential angel investors, recognize the huge risk you are asking them to take. Odds are that about 50% of their businesses will fail, just like those that Frazier sponsored. If it sounds like they are asking for too much equity or too much involvement, ask yourself where you might be without them.

Our hats go off to angel investors, every single one of them.

Women's Business Plans Capture Attention. Why? Because Women Succeed.

Keyword: Business plans for women

For decades women in business have been the brunt of a gazillion jokes. Well, fellas, the joke may be on you. Financiers at all levels -- bankers, angel investors and venture capital -- are taking notice of women's business plans. And it is not because the ladies are pretty. It is because the ladies are surviving this recession a whole lot better than their male counterparts.

The Florida International University's Center for Leadership and The Commonwealth Institute South Florida discovered this in a survey released last week. And they explored why women are succeeding in such dire times.

The reasons:

First: Women-led businesses traditionally have taken on little debt and therefore have the flexibility to maneuver during tough times. Instead of going to banks for help, women leaders are overcoming challenges by using their own cash from operations to finance growth.

Second: Women are coping with the economic downturn by looking for new opportunities. Rather than focusing on cost-cutting strategies, they're strengthening relationships with customers and vendors, and forming strategic partnerships or creating new division to bring in new business.

Third: Women don't let the economy get them down.

''These women leaders were very positive about their ability to survive the current economic situation,'' says Joyce Elam, executive dean of the College of Business at FIU. "The environment has not affected their psychological state.''

Fourth: Women are self-motivated, well educated and passionate about their business. They also are optimistic. The majority of the 116 women-led organizations in the survey continue to expect an increase in revenue over the next two years.

Fifth: Women leaders are taking a collaborative approach to recession survival, turning to strategic alliances or partnerships for financing growth.

Joyce Landry, CEO of Landry & Kling of Miami, a 27-year-old cruise event services firm, credits alliances with her company's growth. She's launching a new division, an Internet portal, financed mostly through a partnership. ``We think that will help it grow much faster than looking for traditional financing options.''

Sixth: Women leaders also consider networking and mentorship important factors in their individual career success, the survey shows. Almost half actively participate in professional business associations and 90 percent believe that mentors have been important in their careers.

For these women, work and home life are extremely intertwined. The survey found most of the women leaders talk about work problems and concerns with their family.

For all of these reasons, and more, women business owners are being taken much more seriously than ever before. So, ladies, spiffy up that business plan and set your sites upward. It may be a bit of a bumpy road, but you are really on the right path!

Minority Business Loans -- From Kiva to the US

I am usually pretty thrilled with the announcement of new loan programs, especially for minority entrepreneurs. But this one caught me off guard.

Kiva is the organization that we have featured on our home page for several years now. Kiva's mission is to help entrepreneurs in third world countries, from things as simple as buying a new cow. I have personally supported Kiva, and have been glad to do so, knowing that I have helped hard working entrepreneurs in third world countries.

But beginning today Kiva will offer minority business loans to entrepreneurs in the US.

Kiva didn’t intend to raise money for aspiring businesses in the world’s largest economy. But the reluctance of U.S. banks to lend during the past nine months caused the San Francisco-based nonprofit to reconsider, said Premal Shah, Kiva’s president.

Kiva relies on “group-funding” to make its loans. People come to its Web site, sift through the business plans of entrepreneurs and then contribute in $25 increments. The money is pooled to finance loans that typically range from a few hundred dollars to several thousand dollars. The repayments don’t include interest; people either get their original $25, keep it in the lending pot or donate toward Kiva’s administrative expenses.

Since 2005, Kiva has raised more than $75 million from 500,000 people and lent the money to about 180,000 entrepreneurs in 44 countries. About 98 percent of the loans have been repaid on time, Shah said.

I know times are tough in the US. But are we truly so bad off that our projects can sit comfortably next to a poor family in Afghanistan or Uganda?

This minority business loan program will be interesting to watch.

Cut The Red Tape On Your Franchise Loan

Keywords: Business Plans for Franchising

Franchising is a great option for many business owners, especially if they are new to business, or new to that line of business. Typically bank loans for a franchise involve having the bank investigate both the borrower AND the franchisor.

There is whole lot easier way.

Go to the list of franchises that have been pre-approved by the SBA. You will discover literally hundreds of franchises in dozens and dozens of categories. Investigate a few of them and see which ones look most promising to you. The review that the SBA does only reviews for "unacceptable control provisions by the franchisor over its franchisees." It does NOT approve, nor even review, the financial operations or stability of the franchisor.

Once you have your company picked, get your own business plan in place. The lender will need to know everything about the business, including your financial obligations, and how much you are contributing, and how much training you will receive, etc., etc. Even if you are going with a well known brand name, don't assume your lender knows it. He may not.

Your upfront costs may be higher than if you did not have a franchise, but the success rate of franchise operations is higher.

SBA ARC Loans Coming On June 15

It's not a lot of money. And it is only a deferment of payment, not a grant. But the ARC loans will help some.

Beginning June 15, the SBA will start guaranteeing America’s Recovery Capital, or ARC, loans. The program offers deferred-payment loans of up to $35,000 available to viable small businesses that need short-term help to make their principal and interest payments on existing qualifying debt, according to the SBA.

The loans are interest-free and fee-free to the borrower, and 100 percent guaranteed by the SBA.

“These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times,” said Karen Mills, SBA administrator. “Together with other provisions of the Recovery Act, ARC loans will free up capital and put more money in the hands of small business owners when they need it the most.”

ARC loans will be disbursed within a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities.

Repayment will not begin until 12 months after the final disbursement. After that, borrowers will pay back the loan principal over a period of five years, according to the SBA

Minority Business Loans -- US Veterans

It happened again today. A US veteran contacted us who is having trouble getting a VA loan for a small business. It happens again and again. And it is a disgrace.

Here is what I wrote to him:

Joe,
First, I would be kidding if I said it was easy. It is not. I've heard from a number of Vets that getting these loans just has not been easy. The problem is that most Vets, like you, are looking for a small amount of money and the banks just don't like doing the paperwork for this small an amount.

So here's what to do:
1. Get a business plan ready. It doesn't have to be fancy. A basic one will do.
2. Call your local SBA bank (look in the yellow pages to see which ones have SBA loan programs). Call and ask if they handle the Veterans loans. Make an appointment to see a specific person at the bank.
3. At your meeting, present your business plan and offer to provide the bank with any additional information they need.

Keep track of what you do, and who you talk to. Make notes on the conversation.

If the bank is not forthcoming with the loan, contact your Representative in the US Congress. Tell them step by step what you have done, who you talked with, and what happened. If anyone has influence with your local banker, it is the Representative from your area. Also write your US Senator with the same information. Your representative and senator depend on political contributions from banks, so they have personal relationships with them. Use their services. This is part of what they do. They need your vote too.

Did I mention that how we treat our vets is a disgrace? All minority business loans deserve special attention, and this one tops my list.

OK, Mr./Ms. Banker, what's your excuse?

p.s. -- If these steps don't work, contact your local newspaper. Let them know how local banks treat veterans when they apply for a minority business loan.

Finding Investors Has Just Gotten Easier - Get Your Business Plan In Order

Is yours a "qualified small business"?
Are you actually conducting business?
Does your stock appeal to individuals, rather than to corporations?
Is your company a "C" corporation, rather than an LLC or subchapter S?

If you can answer "Yes", then you are very attractive to thousands of individual investors.

This is huge! There is a largely-overlooked provision in the economic stimulus law that lowers capital gain taxes for individuals who invest in “qualified small business” (QSB) stock.

And now it looks like that tax break could grow from merely good to downright golden under an Obama proposal just issued. Obama aims to completely eliminate capital gains taxes on qualified small business stock held at least five years. Yes, that’s right. Zero. It’s a game-changing shift.

Startups are already salivating at the prospect of putting together stock deals where individuals (but not corporations) who invest — owners, employees, angels, etc. — can exit and pay no capital gain taxes.

What has already been passed: Under new stimulus law provisions, individuals who buy stock in a small business from now through 2010 get a real break on capital gains taxes later on. If the stock is held at least five years, 75 percent of any gain can be excluded — up from the previous 50 percent. The stock must be original issue stock held by a non-corporate investor in a C corporation with gross assets under $50 million. The company must also be actively engaged in a trade or business.

What is being further proposed: The Obama Administration’s budget proposal just issued provides for a complete capital gains tax exemption for qualified small business stock issued since February 17, 2009 and held five years. What’s more, the gains would not count toward calculating the alternative minimum tax (AMT).

Who qualifies: This tax break only applies to individuals who invest in a U.S.-based qualified small business C-corporation with less than $50 million in assets. S-corporation stock does NOT qualify, even if the business later switches to a C-corp. The biggest drawback is that many types of professional businesses are out. The basic rule is this: The company does not qualify if its principal asset is the reputation or skill of one or more employees, such as a doctor, lawyer or accountant. That rules out service firms in health care, law, accounting, architecture and consulting, among others. But most Internet, tech, retail and manufacturing businesses would qualify.

The impact on your business plan:

1. Make sure your potential investors know that this is happening. Many people don't know it yet, and it is up to you to provide the documentation for it.

2. Specifically point out in your business plan how your business is qualified under these new provisions, item by item.

3. Make certain you are approaching "qualified investors", those whose net worth and/or personal knowledge makes them qualified to invest in your company.

4. Don't try to grow too quickly over the five year period, or your investors may lose their entire tax advantage.

If you do opt for this route, be sure to check with a corporate attorney who can keep you apprised of any changes to the law as they occur. He should also do a check up once in a while to ensure that you are compliant with the terms of the law. The cost for the attorney will be minimal when compared to the huge benefit you will receive in the stock offering.

Business Plans for Angel Investors Don't Work

Business Plans for Angel Investors

"There's one thing I've learned about entrepreneurs' business plans. Every one is wrong."

That's not my voice. It is the voice of Josh Kopelman, the co-founder of the venture capital firm The First Round Capital. Kopelman is one of the leaders of a very small group of angel investors: "super angels", those angel firms that seek out startups and invest in them.

BusinessWeek has an outstanding article on Kopelman and other super angels in its June 1st issue. The article highlights four super angel groups:

FIRST ROUND CAPITAL. Headed by Kopelman and ex-professor Howaqrd Morgan, it has financed 70 startups.

BASELINE INVESTMENTS. Ron Conway and former eBay exec Steve Anderson lead the firm, investing in 30 startups.

MAPLES INVESTMENTS. Mike Maples, a former IBM-er, runs a $30 million fund with 20 startups such as Twitter, Digg and Chegg.

SOFT TECH VC. Jeff Clavier, a former venture capitalist, has a $12 million fund and has financed 50 startups.

Kopelman is part of a very elite group. When he says that business plans are wrong, he's right. Today's entrepreneurs are schooled in B-school style business plan writing that is so boring that even I can't handle it for more than a few minutes.

When approaching angel investors, accept the fact that the business plan isn't going to be perfect. By the time you and the angel firm are finished, the business plan will be a shadow of its old self. And that's fine. That is how it should be. Your business plan should be designed to capture the imagination of the investor. Once you've got their attention, so to speak, then your head and theirs can fine tune the idea to make it really successful.

Go with energy. Go with flexibility. Go with lots of knowledge and the ability to adapt that knowledge. That's what makes business plans for angel investors work.

A Pause for Veterans Day

I used to really like 60 Minutes, that Sunday evening news-y program. It used to be hard hitting and thoughtful. The years have softened the edges, sadly, and they have not been kind to Andy Rooney ("A Few Minutes With Andy Rooney") either. I have thought for quite some time that Andy should retire.

Yesterday, however, he presented the most thoughtful bit on Veterans Day that I have heard in quite some time. He talked about his buddies from WWII, and the ones who didn't come back. He said that he didn't really think more of them on Veterans Day than he did on any other day, and he suspected most folks were pretty much the same. There is just so much remembering one can do, he said. And he is right.

So why have Veterans Day at all? you ask. Here was the kernel of the idea I liked. "So that we can plan for peace." So that we can dream of a time when young people won't have to die.

What if we took Veterans Day and created a whole slew of "bridge building" programs, between Jews and Arabs, Blacks and the KKK, criminals and the victims. Martin Luther King, Jr. Day has sort of become our national day of volunteering. How about if Veterans Day became our national day for building bridges.

One day a year won't bring peace, now or ever. But it is a small contribution, and Yes, every small contribution counts.

We do hope you were able to embrace your loved ones during this holiday.

... Yes, There Is A Positive Side, And Your Business Plan Needs to Show It

Small business owners are really a resilient group.

A company as buttoned up as American Express surveyed 727 owners of firms with fewer than 100 employees and found 77 percent think managing through the last few months has made them better at managing their businesses.

And given the size of the group that was involved, plus how large the majority is, the survey's finding is hard to argue with.

Alice Bredin, a small business advisor to American Express Open, also said something mildly encouraging according to Faircloth: "I think entrepreneurs are seeing the beginning of the final days of this, and they're doing whatever they have to do to get through to the end, to find a way to stick around."

This is exactly what we've been shouting about the past few months. So your business has had tough times the past few months. So what? Every business has. But yours has learned something unique that places it in a much stronger position than it was in before, and THAT is what your business plan needs to reflect.

Take this experience that you've had and catapult your business to higher successes. A business plan that can capture just a fraction of this quality is a winner, a real winner.

Put Your Business Plan to Work in the Stimulus Package World

Small businesses are struggling to get their slice of the $787 billion economic stimulus package, lawmakers and entrepreneurs said during a Senate hearing on Thursday.

Ninety-four days after President Obama signed the 2009 American Reinvestment and Recovery Act into law, federal agencies have awarded small businesses only 10 percent of stimulus contracts, according to data released during the Small Business and Entrepreneurship Committee hearing. Those contracts are worth a total of $389 million.

"This is simply unacceptable," said Sen. Olympia Snowe, R-Maine, the committee's ranking member. "Small businesses deserve their fair share."

Snowe said small businesses, many of which have been particularly hard hit by the economic recession, should receive at least 23 percent of federal stimulus contracts. That would match the government's overall small business contracting goal.

"For this trend to change, small businesses need access to capital and increased sales volume," said Sen. Mary Landrieu, D-La., chairwoman of the committee.

On Wednesday, Landrieu and Snowe sent letters to the nation's governors urging them to use a portion of their Recovery Act funds for small business contracting.

Small Business Administration leaders told lawmakers to be patient, and noted signs of progress. As of April 15, small businesses had won 1.8 percent of all stimulus awards, according to SBA data. By May 5, that figure had increased to 6.3 percent, and by Thursday, it had reached 10.3 percent.

"We have seen a steady increase [in contracting], but the absolute value is not where we want it to be," said Joe Jordan, SBA's associate administrator of government contracting and business development.

SBA has partnered with the General Services Administration to disseminate information about small business stimulus contracting opportunities, Jordan said. And, earlier this week, SBA launched a new Web site where small firms can find Recovery Act subcontracting opportunities.

We encourage each and every one of your to take a look at that site. Look at both what is online, and what is not. Yes, look at the construction and techological projects. Then also look at the geographical areas and determine what support services these projects will need.

The projects are there. The money is there. Go for it. And if you need financing, get that business plan out of cold storage and put some life into it. If ever there was a time when a strong business plan will serve you well, this is IT.

Does A $35,000 Interest Free Loan Sound Enticing?

It is National Small Business Week. This seems like a good time to introduce interest free loans for small business.

With its unofficial theme of recovery for small business, National Small Business Week provided an appropriate platform for the government to announce a significant new loan program for struggling business owners - the American Recovery Capital Loan (ARC) Program.

Guaranteed by the SBA, the ARC Loan Program provides interest free loans of up to $35,000 to small businesses "for the purpose of making principal and interest payments on existing, qualifying small business loans for up to six months".

These loans can include credit card loans, capital leases, 504 loans, other loans made without an SBA guaranty, and loans made with or without an SBA guaranty since February 17, 2009.

For the untold thousands of business owners across the country who are trying to work through an economic recession that’s left them with falling revenues that no longer cover operating expenses, debts and the basic cost of living - the ARC Loan Program is good news.

Below are more specifics on the ARC Loan, qualification criteria, and where to apply for the loan:

What is an ARC Loan?

The ARC Loan provides up to $35,000 to qualified small businesses to make payments of principal and interest, in full or in part, on one or more existing qualifying small business loans for up to six months. The loan is interest free and 100% guaranteed by the SBA. No collateral is needed and there are no fees associated with the loan.

Loan proceeds are provided over a six-month period and repayment of the ARC Loan principal is deferred for 12 months after the last disbursement of the proceeds.

And the best news is that repayment can extend up to five years.

Who is Eligible for an ARC Loan?

The loan is available to viable, for profit small businesses in the U.S. with qualifying small business loans (described above) who are experiencing immediate financial hardship (such as declining sales or revenues or if you are struggling to pay your business operating expenses).

Where to Go

Your local bank is the distribution point for these loans. If you presently have a qualifying loan from them, they have a very vested interest in seeing that you get one of the ARC loans to help you over the next few months. Go see them.