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Although news reports continue to lament on the condition of the economy, there are a few actions taken by the government that could make a real difference in the state of Nevada. Beginning this fall, the State Small Business Credit Initiative (SSBCI) and the Catalyst Fund (SB75) are programs that make money available to small businesses throughout the state. Nevada received an allocation of 13.8 million dollars under the SSBCI to encourage business start-up and expansion through these programs. Each plan works differently; however the effects are the same. More money available to businesses in Nevada equals more jobs and a growing economy.
The SSBCI is a program designed to encourage and achieve funding for small businesses. Through a variety of outlets, funding for small business start-ups and expansions will be easier to receive. The outlets are the Collateral Support Program, the Nevada Microenterprise Initiative, and Nevada Venture Capital.
The Collateral Support Program is designed to enable borrowers to acquire financing through banks that might not be available due to a lack of collateral on the borrower’s part. This lack of collateral could be due to reduced value of business or personal property or reduced value of other assets that might have otherwise been used as collateral in a better economy. Once the program starts in a few months, qualified business owners and potential business owners will be able to receive lending from a financial institution without having to provide the full collateral for the loan.
To be eligible to benefit from this program the borrower must be placed in a qualified industry such as mining, manufacturing, research and development, wholesale and trade, film and digital media productions, office operations or a business existing in technology. Other parameters of the program include maximum collateral deposits of $500,000, with exceptions for businesses that might provide significant job creation or economic impact, and collateral support for up to 35 per cent of the loan amount. The Collateral Support Program allows lenders to approve loans to qualified borrowers with diminished loan collateral which helps grow Nevada’s business infrastructure.
The Nevada Microenterprise Initiative (NMI) is an organization that aids small businesses through a lending program and classes. The SSBCI sets aside funds to support NMI’s lending program. Most of NMI’s clients are small enterprises with five or fewer employees and require less than $35,000 for start-up. With the money from SSBCI, NMI can help small businesses get off the ground and contribute to the overall success of Nevada’s economy.
As set up by the SSBCI, the Venture Capital Fund program sets aside money to contribute to an overall fund as established by the new cabinet-level agency – The Office of Economic Development. These funds will be used to provide money to private sector businesses to encourage start-ups, growth, or new business locations in Nevada. The new Office is in the process of being established, but applications for funding are expected to be accepted soon.
The State Small Business Credit Initiative and the establishment of the Catalyst Fund show movement in a positive direction for Nevada. Each of these programs will support the creation and growth of small businesses thereby making Nevada’s economy stronger by creating job opportunities and forming a sustainable economic business structure.
Keep an eye on the NSBDC website (www.nsbdc.org), the Nevada Commission on Economic Development website (www.diversifynevada.com) or the NMI website (www.4microbiz.org) for future details on these and other business support programs.