Small Business Grants

Small Business Innovation Research (SBIR) Program

Under the Small Business Innovation Research (SBIR) program, 10 federal agencies having annual external research and development requirements of more than $100 million, must reserve 2.5% of these funds for award to small businesses.

Small Business Technology Transfer (STTR) Program

Under the Small Business Technology Transfer (STTR) program, five agencies with annual external research and development budgets of more than $1 billion, must reserve .15% of these funds for award to collaborative efforts between small businesses and non-profit research institutions.

Qualified Employee Trusts Loan

The Small Business Administration can guarantee 7(a) business loans to employee trusts that are part of a plan sponsored by their employer, and qualify under the Internal Revenue Code as an (Employee Stock Ownership Plan) or the Department of Labor (under the Employee Retirement Income Security Act). Loan proceeds may be used by an employee trust for a growth and development loan, whereby the trust re-lends the loan proceeds to the employer by purchasing qualifying securities in the employer's business; or a change of ownership loan, whereby employees acquire controlling interest in the employer's business. Collateral for the loan includes the assets of the employer's business.

Venture Capital

Small Business Investment Companies (SBICs)

Small Business Investment Companies (SBICs) put venture capital, in the form of small business loans and equity financing, into small businesses for growth, modernization and expansion. SBIC's are investment companies licensed by the Small Business Administration. They make venture capital investments and long-term small business.

Congress created the Small Business Investment Company Program in 1958 to provide venture capital to of start-up and expanding small businesses. Licensed and regulated by the U.S. Small Business Administration, SBICs are privately owned and managed, profit-motivated investment firms.

Many investment companies seek out small businesses with new products or services because of the strong growth potential of such firms. Some SBICs specialize in a particular field in which their management has special knowledge or competency. Most, however, consider a wide variety of investment opportunities.

SBAExpress Loans provide small business loans of $250,000 or less. The SBA provides a rapid response through its PLP processing center in Sacramento, Calif. within 36 hours of receiving the complete application package. Lenders use their own procedures to approve and service the loans.