Economic Development Data Analysis and Assessment

2.1.2 Federal Resources at State-Level
The US Small Business Administration (SBA), through private
lenders, provides America’s small businesses loan guarantees,
loans, microloans, grants, bonds, and other financial assistance.
For the State of Rhode Island, its customized “Resource Guide”
lays out detailed information on all of its programs, business
prerequisites, and the necessary steps firm owners need to take to
get access to such funding. 25
According to the RI SBA website, in 2011, the last full year for
which data was available, Rhode Island businesses had a loan
volume of $126.5 million through 447 SBA-backed loans, up
“nearly 78 percent” from the prior year, despite loan counts
decreasing by 10. 26 The Bank of Rhode Island, Coastway
Community Bank, Citizens Bank, Webster Bank, and the
Washington Trust Company were the top five SBA lenders, by
number of loans, that year.
In the fourth quarter of 2012 (October 1 – December 31,
2012), Rhode Island’s SBA approved 73 loans across the
state, totaling over $18.01 million. 27 The City of Warwick led
the 23 municipalities listed, with 11 loans totaling $3.8 million.
Approximately $15.5 million of these loans were “7(a) Loans,”
the SBA’s primary business loan program. The 7(a) Program has
broad eligibility requirements and credit criteria, giving it flexibility
in loan structure, usage, and availability. 7(a) loans pass through
private funders.
Another $3 million originated from the SBA’s “504 Project
Participation” Program, which provides long-term, fixed-rate
subordinate mortgage financing for “the acquisition and/
or renovation of capital assets including land, buildings,
and equipment.” 504 loans are provided through Certified
Development Companies (CDCs), who then work with banks and
other lenders to make loans in first position on fair terms. 28
Three Rhode Island Certified Development Companies during
the fourth quarter also received 504 Loan Debenture Funding
(pass through) totaling $2.54 million: New England Certified
Development Corporation; the Ocean State Business Development
Authority; and the Bay Colony Development Corporation.
In the third quarter of 2012, another $13.8 million was lent out to
Rhode Island based firms with SBA backing.
Federal Resources at State-Level: Financial
U.S. Small Business Administration: Rhode Island District Office
The SBA offers information on its small business loans (largely through private
lenders), grants, bonds and other financial assistance to firms in Rhode Island
http://www.sba.gov/about-offices-content/2/3144
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7(a) Loans
The SBA’s primary business loan program; has flexibility in loan structure,
variety, and availability; its guarantees only apply to a portion of a loan with
maximum 7(a) loan amount of $5 million.
Special Purpose 7(a) Loans
Variation of the 7(a) program to address particular financing needs of certain
small businesses; generally covered by same rules, regulations and fees of
regular 7(a) and include: SBAExpress, Patriot Express, Rural Lender Advantage
Loans, Advantage Loans, CAPLines, the International Trade Loan Program,
Export Express, and the Export Working Capital Program.
504 Loans
An economic development program that supports small business growth by
providing long-term, fixed-rate subordinate mortgage financing for acquisition
and/or renovation of capital assets.
Micro Loans
The SBA’s micro loan program provides smaller loans, ranging from $500
to $50,000, to women, veteran, and other small business owners through
intermediaries nationwide.
Small Business Investment Company (SBIC) Program
An alternative to bank financing for small businesses, the SBIC program
provides gap financing for growth capital to qualifying small businesses.
Small Business Innovation Research (SBIR) Program
The SBIR program commits funds to help small businesses advance their
technical research & development potential through eleven different federal
departments.
Small Business Technology Transfer (STTR) Program
The STTR program reserves a percentage of federal research & development
funding for small businesses and non-profit research institution partners.
Surety Bond Guarantee Program
The Surety Bond Guarantee program is a public-private partnership between
the federal government and surety companies to provide small businesses with
the bonding assistance necessary for them to compete for public and private
contracting and subcontracting opportunities.
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ECONOMY RI: Economic Development Data Analysis & Assessment | February 2013