On Thursday, September 25, 2014, the SBA publicized its expansion of the Impact Investment Fund. This fund, which was part of President Obama's Start-Up America Initiative, started in 2011 as a five year plan. However, the increase and additional policy updates promise SBA's continued presence to operations within the fund, demonstrating their commitment to small business growth and prosperity in the United States. The Impact Investment Fund is currently part of the SBA's Small Business Investment Company Program. This program choose qualified investment companies to distribute funds to small businesses.
The Fund increase is good news for small businesses because it means that more funds and grants are available for small business start-ups and current small business owners. SCORE is sponsored in part by the SBA and can help mentor you and your small business or small business start-up through a grant or funding application process.
The updated document for the policy declared that each investing company within the Small Business Investment Company Program "must have identified itself as having an impact investment strategy that is consistent with the investment strategy presented to the SBA." (U.S. SBA Policy) Therefore, prospective applicant companies must demonstrate their personal commitments and plans to small businesses and a history of impactful investing resulting in small business prosperity. The SBA tracks the progress of these impact investment companies to ensure that the funds are useful to small businesses.
More policy updates include outlines of research and technology grants for small businesses, as well as grants for small businesses in low income or "under served" communities.
There are many more grants and funds available to small businesses from private investors and public banks. SCORE can help you decide which grant, loan or funding option is the best choice for your small business.
By Anna Witan