Stimulus Money for Small Businesses? We Hope So!

Business owners are waiting with bated breath to see if any of the stimulus money actually goes to help stimulate the economy in the place where many believe the economy begins:  small business.  The business owners I know personally are calling me and saying, “We’re dying here.  Is there any emergency money available yet?”  The problem seems to be that the money is reserved for those companies that don’t really need it and who don’t really want it.  Struggling companies that portray any degree of risk are pretty much out of luck.  That means if they are a start up (less than two years old) or are financially on shaky ground (like substantially behind on payments) then they are not eligible for the current $35,000 ARC loans.

So who does qualify?  Well, if you have been profitable one of the last three years and are able to demonstrate enough income to make payments AND meet current costs over the next two years, it is likely you qualify.  But banks currently are limited on the number of ARC loans they can extend to their customers.  At a 0% interest rate and with no payments due the first year, however,  this loan is well worth pursuing if you need a boost to make it through this economic crisis.

There is good news, though.  According to the  Washington Post, the government is considering reaching out to small businesses through access to the $700-billion Troubled Asset Relief Program (TARP), originally earmarked for rescuing the banking system. According to the article, the Obama Administration is looking at expanding the 7 (a) program that “helps small companies borrow from banks at low rates to keep their businesses going.”  These loans, differing from conventional SBA 504 loans in that they can be used for working capital, would have fewer restrictions than the ARC loan and “could be used to buy inventory, hold on to employees and pay off short-term debt., increasing credit lines and making more businesses eligible for financing.”  Making these loans more appealing to lenders is the fact that, in the event the business fails, the government would cover most of the losses on the federal loan, possibly as much as 90 per cent.

The article says, too, that proponents of the proposal understand the role of small business in economic recovery.  “Small business is the backbone of American jobs and innovation,” said Matthew Vogel, a White House spokesman. “We are deeply committed to continuing to work every single day to devise and implement policies that will help small businesses through these challenging economic times.”

In a nutshell:  more money available to struggling small businesses?  It is not likely that businesses will see any of the TARP money until fall, but ultimately, we hope so.

Sue A. Evans

Florida PTAC: A Business Cure for Hard Times

A couple weeks ago I sat at a meeting of IT professionals next to a man named Richard.  Richard is an IT specialist who presently works as a civilian for the military.  Richard’s dream is to eventually start his own business, contracting government work.  I will tell you what I told him:  Richard!  You are in a perfect position to go into business for yourself…what is stopping you?  Richard explained that he just doesn’t know how to get started and finds the whole procurement process a bit intimidating.

Down the hall from my office is the office of Laura Subel, Program Manager for Florida PTAC.  PTAC, loosely translated, stands for Office of Doing Business with the Government.  Laura is the one who will lead you down the path.   The Florida PTAC Office educates businesses on what the government requires to be a government supplier of goods or services.  It takes jumping through a few hoops, but considering that the government is one of the few customers buying in this economy, it is well worth it.

Laura has this sage advice to small businesses:  “We don’t care what you call us, just call us!  The acronym we want you to remember is HELP.  The PTAC is here to HELP you do business with the government. “

Laura said that the PTAC (which really stands for Procurement Technical Assistance Center) provides the following services at no charge:

• One-on-one counseling sessions such as Bid/Proposal Preparation, Marketing, and more
• Assistance with 8A and HUBZONE certification applications
• Free access to resources
• Referrals to the HAAS Center for Business Research
• Training Events on related topics

Laura promises that selling to the government can be  easy IF you follow the rules and work with the PTAC office to learn the rules.  They will provide guidance through the maze of rules and procedures.  Just one phone call is separating you from a client who spends over $40 billion a year doing business with small businesses, and who is in the market for every service or product that you can imagine.  Make the call.

Sue A. Evans