What are some of the specialized programs run by the Small Business Administration (SBA) to help small businesses?

Question

What will be an ideal response?

Answer 1

The SBA has several specialized programs. First, there are special government contracts to be awarded to small, disadvantaged business subcontractors, along with counseling and bonding assistance. The small business must be at least 51 percent owned by a "socially or economically disadvantaged individual." Included in this group are African Americans, Native Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans.
A second special program is the SBA Low Documentation (LowDoc) Loan Program. It can be used for loans of less than $100,000. While the borrower must still work with a bank, the documentation is much less stringent. The LowDoc puts more emphasis on the borrower's credit history, projected cash flow, and character, and less on collateral and equity.
The SBA also has a CAPLine Revolving Line of Credit initiative. Its purpose is to help small companies obtain short-term working capital through an established line of credit. Finally, the "Women's Prequalification Loan Program" allows women business owners to receive prequalification from the SBA for a loan guarantee of up to $250,000 before going to a bank. The SBA guarantees the bank up to 80 percent in loans up to $100,000 and up to 75 percent on loans from $100,000 to $250,000. To be eligible, the business must be at least 51 percent owned, operated, and managed by women, have sales of less than $5 million, and employ fewer than 100 people.