Stimulus Funds, the SBA & Maine

August 7th, 2009

The story:

With the U.S. Small Business Administration expected to announce the expansion of its ARC loan program, to provide interest-free loans to struggling small businesses, Jim McConnon, UMaine Extension specialist and professor of economics and an expert on small business, is available to explain how the SBA has been among the first responders to the ailing economy — at a time when critics of the government stimulus plan say the benefits are not widespread.

The hook:

Through the American Recovery and Reinvestment Act, the SBA has made borrowing money easier, less costly and more accessible for struggling businesses without adequate collateral to qualify for traditional business loans, McConnon says. This access to new capital can keep struggling businesses afloat as they ride out the recession and it allows other businesses to expand and upgrade, both developments that can maintain jobs and create new ones.

McConnon says the success of the more than 42,000 small businesses with employees in Maine and the 114,000 sole proprietors is critical to Maine; they are the backbone of the state’s economy.

In addition to making low-interest loans available for qualified businesses, other government regulatory changes are being implemented by the Internal Revenue Service, to help business recover equipment-investment dollars faster, and the U.S. Department of Agriculture Rural Development, to help finance and develop essential community facilities for public use~in rural areas.

Such facilities include childcare centers, hospitals, medical clinics, assisted living facilities, fire and rescue stations, police stations, community centers, public buildings and transportation, all listed under the USDA Community Facilities program. Funds are available to public bodies, non-profit organizations, and recognized Indian tribes.

Contact information:

McConnon can be reached by telephone at (207) 581-3165 or by email at jimm@umext.maine.edu. Please call George Manlove at 581-3756 for assistance in reaching McConnon.