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The U.S. Small Business Administration is inviting experienced early stage investment fund managers to apply for licensing as Early Stage Innovation Funds as part of SBA’s Small Business Investment Company capital investment program.
Licensed Early Stage Innovation Funds can receive SBA-guaranteed funding to match their privately raised capital up to a maximum of $50 million. Early Stage Innovation Funds must invest at least 50 percent of their investment dollars in early stage small businesses.
“This initiative is intended to promote American innovation and job creation by encouraging private sector investment in early stage small businesses,” said SBA Administrator Karen Mills. “Early stage small businesses face difficult challenges accessing capital. At the same time, in this financial climate, venture capital funds are finding it difficult to raise money from institutional investors. By licensing and providing SBA financial backing to Early Stage Innovation Funds, we hope to expand entrepreneurs’ access to capital and encourage innovation as part of President Obama’s Start-Up America Initiative launched last year.”
As part of the Start-Up America Initiative, SBA intends to commit up to $1 billion in SBA guaranteed leverage over a five-year period to selected Early Stage Innovation Funds using its current program authorization.
The Federal Deposit Insurance Corporation and U.S. Small Business Administration today announced new resources to support small businesses across the nation. Acting Chairman Gruenberg and SBAs Associate Administrator for Entrepreneurial Development Michael Chodos released Money Smart for Small Business, a training curriculum for new and aspiring business owners.
Developed in partnership between both agencies, this curriculum is the latest offering in the FDIC’s award-winning Money Smart program.
Institutions participating in the Small Business Lending Fund significantly increased small business lending in the 4th quarter of 2011 by $1.3 billion over the 3rd quarter—for a total of $4.8 billion over their baseline. A substantial majority of SBLF participants have now increased their small business lending by 10% or more.
The Obama Administration and the Department of Commerce are committed to creating a level playing field so that all American businesses have a fair shot at creating the jobs Americans need and exporting the goods and services the rest of the world demands. At MBDA that commitment translates into giving minority entrepreneurs the tools and resources they need to succeed and opening up opportunities, often in areas where they have had limited success in the past. Winning federal contracts is a great example.
State of Connecticut Launches STEP UP for Small Businesses
On April 3, 2012, Governor Dan Malloy (D-CT) announced a new program designed to promote job creation by providing incentives to employers that hire unemployed jobseekers.
The Subsidized Training and Employment Program (STEP UP), created as part of a jobs package passed by the state legislature, creates two types of hiring incentives for eligible small businesses. A six month wage subsidy is available to small businesses with fewer than 50 employees who hire those from a community with an employment rate equal to or higher than that of the state (7.7% as of April 2012). Further, such employees must have an adjusted family income equal to or less than 250% of the federal poverty level.