[Federal Register Volume 59, Number 11 (Tuesday, January 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1054]
[[Page Unknown]]
[Federal Register: January 18, 1994]
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SMALL BUSINESS ADMINISTRATION
Microloan Demonstration Program
AGENCY: Small Business Administration (SBA).
ACTION: Notice of request for proposals, availability and filing
deadlines.
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SUMMARY: Section 7(m) of the Small Business Act, 15 U.S.C. 636(m),
authorizes the SBA to conduct a Microloan Demonstration Program
(Program). SBA issued regulations which may be found in Title 13, Code
of Federal Regulations, Sections 122.61--122.61-12. This notice
announces the availability of a Request for Proposals for entities
seeking to participate in the Program as intermediary lenders and
located in the jurisdictions of Delaware, Hawaii, Nevada, Tennessee,
Virginia, Wyoming. The deadline for such receipt of such proposals is
March 14, 1994.
DATES: Request for Proposal Packages will be available beginning
January 31, 1994.
ADDRESSES: Request for Proposal Packages may be obtained by written
request submitted to U.S. Small Business Administration, Office of
Financing, Microloan Demonstration Program, 409 Third Street, SW., 8th
Floor, Washington, DC 20416, Attn: Microloan Proposals, Mail Code 6120
or by telephone at (202) 205-6490.
SUPPLEMENTARY INFORMATION: Section 7(m) of the Small Business Act
authorizes SBA to conduct a Microloan Demonstration Program. The
purpose of the Program is to provide assistance to women, low-income,
and minority entrepreneurs, and business owners, and other such
individuals possessing the capability to operate successful business
concerns and to assist small business concerns in those areas suffering
from a lack of credit due to economic downturn. Under the Program, SBA
is authorized to make direct loans to qualified intermediary lenders
who will use the proceeds to make short-term, fixed rate microloans, of
not more than $25,000, but particularly in amounts averaging $7,500, to
start-up, newly established and growing small business concerns. In
conjunction with the loans made to intermediary lenders, SBA may make
grants to such intermediary lenders to be used to provide intensive
marketing, management and technical assistance to microloan borrowers
under this Program.
SBA will accept responses from entities located in the above
jurisdictions which seek to be accepted into the Program as an
intermediary. To be eligible, an organization, inter alia, must be: (a)
A private, non-profit entity; or (b) a private, non-profit, community
development corporation; or (c) a consortium of private, non-profit
organizations or private, non-profit community development
corporations; or (d) a quasi-governmental economic development entity,
other than a State, county, municipal government or any agency thereof,
only if: (1) No application is received from an otherwise eligible and
qualified organization; or (2) the SBA, in its sole discretion,
determines that the needs of a region or geographical area are not
adequately served by an otherwise eligible and qualified organization
which: (a) has submitted an application; or (b) has previously been
admitted to participate as an intermediary. Further, an entity meeting
one of the above descriptions must have, by itself, at least one year
of experience making and servicing microloans to start-up, newly
established, or growing small business concerns, and itself providing,
as an integral part of its microloan program, intensive marketing,
management, and technical assistance to its microloan borrowers. In
addition, each intermediary lender is eligible to receive grant funding
to support the costs of providing such technical assistance in an
amount of not more than twenty-five percent of the total outstanding
balance of the loan made under this Program.
Those organizations located in the indicated jurisdictions and
which believe themselves eligible and which wish to participate in the
Program may obtain a Microloan Demonstration Program Request for
Proposals Package by contacting SBA at the above set forth address.
Completed proposals must be received by SBA no later than 4:00 p.m.
Eastern Standard Time, March 14, 1994.
Dated: January 7, 1994.
Erskine B. Bowles,
Administrator.
[FR Doc. 94-1054 Filed 1-14-94; 8:45 am]
BILLING CODE 8025-01-M
