In business? Do you need money?

Quite frequently when existing or potential business owners are seeking help, they'll ask me about how to get their hands on some 'free' money. Usually, these folks have applied for a commercial loan and found in these economic times that lenders aren't loaning out money as readily as they were before the recession. They've heard about grants that the federal government has and they want some. I hate to burst their bubble but there are no real freebies.

The federal grants are mostly channeled through state programs, or the federal agency's state office, and then communities can competitivelyapply for some of those funds to implement local initiatives. If the grant application is successful, then the local government or agency is able provide some additional support for its business community. Other federal programs provide funding and/or tools for higher learning or financial institutions that indirectly support business development.

Depending on the scope of the federal program, the end result can provide a variety of options for businesses, such as, funds for technology development and transfer, tax credits for specific investments, export assistance, technical services, direct loans and guarantees on commercial loans from a financial institution.

The U.S. Small Business Administration (SBA) is one of the key federal agencies involved in developing businesses and temporarily has access to additional funds provided under the Recovery Act. According to a February 2010 press release on their website, resources now include, "..two new small business lending initiatives to help increase access to capital and create jobs. These temporary SBA initiatives include a refinancing program for small business owner-occupied commercial real estate and an expanded working capital loan program. At the same time, the president continued his call for a permanent increase of the maximum loan sizes for SBA's 7(a), 504 and microloan programs and to extend the successful small business Recovery Act lending programs. These initiatives are part of the Administration's broader agenda to improve access to credit for small businesses, including a proposal to transfer, through legislation, $30 billion to a new Small Business Lending Fund that will support lending by community and smaller banks.

The key to accessing any of these monies is found through a financial institution, whether bank, credit union or other commercial lender. SBA maintains a list of participating lenders that can be obtained from the link at www.sba.gov/localresources/district/in/ or by calling their Indianapolis office at (317) 226-7272. SBA also offers training sessions for lenders at various locations around the state.

For Greene County lenders who want to know more, then the following session is being offered:

The Southern Indiana Development Commission and Martin County Alliance, in cooperation with the U.S. SBA, will be hosting a no cost 'SBA for Banks' seminar discussing the 7(a), Exporting, and 504 SBA loan programs at the Martin County Learning Center in Loogootee on June 9th, 2010. This event is for: (1) banks that are interested in becoming an SBA lender, or (2) a training opportunity for a bank employee to learn about the SBA programs, if the bank is currently an SBA lender. To register, or for further information, contact Tim Kinder at (812) 295-4800 or tkinder@martinalliance.org.

The more local access we have to these available federal programs (that is, lenders who are familiar with the programs), the more likelihood of a business that needs additional funding being able to get it. Even if you've applied for one of these SBA loans before, check back with your local lender because the program terms may have changed since you last applied. Currently, the guarantee on SBA loans is up to 90% and fees are waived. Also, there is an effort underway in Congress to continue these terms as depicted, which could be determined in the upcoming weeks.

Just a final note, according to the Indiana Department of Workforce Development, in 2010, Indiana is leading the nation in employment gains, so it looks like recovery is underway. Businesses, especially, need to be prepared for it, by taking advantage of every opportunity to position for future growth.

Joan Bethell is the executive director at Greene County Economic Development Corporation and can be reached at (812) 847-4500 or jbethell@gcedc.us.