Thirty-two community-based organizations that support low-income entrepreneurs are set to receive a combined $5 million in grants from the U.S. Small Business Administration's Program for Investment in Micro-Entrepreneurs (PRIME). The grants are expected to help them further give assistance to small businesses in gaining access to capital to establish and/or expand their business.
Out of the 111 applicants for this year's PRIME grants, 32 have been chosen to receive grants that range from $75,000 to $250,000, and typically require at least 50 percent in matching funds or in-kind contributions. The recipients came from 24 states and the District of Columbia.
"The SBA really has such a vital role not only in helping small businesses access capital, but also to ensure they have access to the resources and training needed to create healthy, sustainable businesses," SBA Administrator Linda McMahon said in a statement. "This year's PRIME grant awardees are dedicated to providing underserved entrepreneurs with the necessary tools to strengthen their businesses and create more jobs."
For the 2018 PRIME grants, the SBA focused on projects that will offer training and technical assistance to improve economically-disadvantaged businesses, especially those that give service to entrepreneurs in rural areas and HubZones.
Moreover, organizations that participate in the SBA'S Community Advantage Program are prioritized in the awards. This year, there are eight selected Community Advantage Lenders, who help provide access to the SBA's 7(a) loan guarantees to help small businesses that have outgrown microlending but are not able to access more traditional financing including funding from SBA commercial lending partners.
PRIME was created by Congress as part of the Program for Investment in the Micro-Entrepreneurs Act of 1999. The grant funds are made available on September 30, 2018, and the project period for each grant is one year.
For more details about the SBA's PRIME and for the list of this year's grantees, visit www.sba.gov/content/prime-grantees
