The Fiscal Year 2009 omnibus appropriations package was passed by Congress this week – and for the microenterprise development field it was worth the wait! Here’s the run down for FY 2009 federal microenterprise development program funding.
SBA Microloan Program
Funding for the SBA Microloan Program is appropriated in two parts – lending dollars and funding for business training and technical assistance. In FY 2009 Congress authorized $21 million in lending for the program – a $1 million increase from last year. The technical assistance portion of the program received and additional $5 million from last year authorizing $20 million to support the business training needs of low-income entrepreneurs.
In FY 2008 the SBA Microloan program made a total of 2682 loans to 992 startups and 1690 existing businesses, which helped create 3889 jobs and retain an additional 5856. The increased funding will only help the microenterprise development field expand its reach and help more entrepreneurs which is particularly important in these troubled economic times.
SBA PRIME
The microenterprise development field once again saved the Program for Investment in Microenterprise (PRIME) from elimination. For the past eight years President Bush has requested zero dollars for the program, which funds much needed business training and technical assistance to very low-income entrepreneurs. Recognizing the need for training dollars, Congress authorized $5 million for PRIME in 2009 – up $2 million from the previous year.
SBA Women’s Business Centers
The SBA Women’s Business Centers will receive $13.75 million in 2009, an increase of $750,000 from 2008. This highly successful program provides entrepreneurial training to over 150,000 business owners annually and has maintained a 14 to 1 return on the federal funds invested.
Community Development Financial Institution (CDFI) Fund
In 2009 the CDFI Fund will receive an increase of $13 million. Congress provided $107 million for the program which provides economic development and low-cost financial services in underserved communities. On average, each dollar invested in the CDFI Fund leverages $19 for housing and microbusiness loans, community development banks, and other economic development efforts.
The appropriations package also includes funding for the following programs of interest to the microenterprise development field:
SBA Microloan Program
Funding for the SBA Microloan Program is appropriated in two parts – lending dollars and funding for business training and technical assistance. In FY 2009 Congress authorized $21 million in lending for the program – a $1 million increase from last year. The technical assistance portion of the program received and additional $5 million from last year authorizing $20 million to support the business training needs of low-income entrepreneurs.
In FY 2008 the SBA Microloan program made a total of 2682 loans to 992 startups and 1690 existing businesses, which helped create 3889 jobs and retain an additional 5856. The increased funding will only help the microenterprise development field expand its reach and help more entrepreneurs which is particularly important in these troubled economic times.
SBA PRIME
The microenterprise development field once again saved the Program for Investment in Microenterprise (PRIME) from elimination. For the past eight years President Bush has requested zero dollars for the program, which funds much needed business training and technical assistance to very low-income entrepreneurs. Recognizing the need for training dollars, Congress authorized $5 million for PRIME in 2009 – up $2 million from the previous year.
SBA Women’s Business Centers
The SBA Women’s Business Centers will receive $13.75 million in 2009, an increase of $750,000 from 2008. This highly successful program provides entrepreneurial training to over 150,000 business owners annually and has maintained a 14 to 1 return on the federal funds invested.
Community Development Financial Institution (CDFI) Fund
In 2009 the CDFI Fund will receive an increase of $13 million. Congress provided $107 million for the program which provides economic development and low-cost financial services in underserved communities. On average, each dollar invested in the CDFI Fund leverages $19 for housing and microbusiness loans, community development banks, and other economic development efforts.
The appropriations package also includes funding for the following programs of interest to the microenterprise development field:
- Community Development Block Grants (Dept. of Housing): $3.9 billion
- Rural Business Opportunity Grants (USDA): $2.5 million
- Rural Business Enterprise Grants (USDA): $38.7 million
- Intermediary Relending Program (USDA): $33.5 million
- Rural Community Development Initiative (USDA): $6.3 million
Have a question about the FY 2009 omnibus appropriations package? Leave your question as a comment and AEO will respond for all to see. Want to share your thoughts on the FY 2009 funding levels? Leave a comment and spark a discussion!
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