Main Street USA: Cornerstone of our Economy

The U.S. Small Business Administration (SBA), a United States government agency that supports entrepreneurs and small businesses mainly through lending programs and counseling, usually makes grants only to non-profit and educational organizations that participate in its counseling and training programs. Small businesses do not qualify for these grants. However, the federal government, and the SBA in particular can support you in obtaining loans and venture capital financing from commercial lenders specifically designed for small and mid-sized businesses. These loans come with a government-backed guarantee and are made through banks, credit unions and other lenders who partner with the SBA. These loan programs have increased in importance after the 2008 credit freeze and the Recovery Act and the Small Business Jobs Act.

There are some exceptions, which might qualify your organization for federal grants: Some state and local programs as well as nonprofit organizations or similar groups might provide small grants for business development. Examples include, but are not limited to, grants to expand child care centers, to develop energy efficient technology, or to boost tourism. According to the SBA, “these grants are not necessarily free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan.”

For more information, check out the pages of the U.S. Small Business Administration at www.sba.gov

The FHA has helped low income families realize the American Dream since 1934 (image: Library of Congress)

In a way, the down payment is where it all begins – and ends for those who cannot scrape together the 20% traditionally considered necessary to finance a home. However, low down payment mortgages are becoming more and more popular and are increasingly supported by government programs that aim to boost the faltering real estate market and help more Americans. Chief among these are so-called mortgage insurances that back the homebuyer in case of foreclosure. The Federal Housing Administration (FHA), which requires home buyers to provide an effective down payment of less than three percent to qualify but limits the loan amount according to geographic area, has almost no restrictions on who can apply. The Department of Veterans Affairs (VA) or the U.S. Department of Agriculture’s Rural Housing Service (USDA-RHS) on the other hand, are more restrictive and specialized.

For more, see the homepage of the Department of Housing and Urban Development.