Economic Recovery: Small Business
Small businesses with fewer than 50 employees often serve as the economic backbone of low-income and urban communities, accounting for more than half of all private sector jobs. Even in good economic times, small businesses struggle to access affordable capital that allows them to maintain business operations and grow. The recession has magnified the credit problem, with 75 percent of domestic banks implementing stricter lending guidelines for small businesses. The recession has also forced small businesses to develop new business strategies to survive. Services under this area of the initiative include:
Phase 1: Recovery
Small businesses with fewer than 50 employees often serve as the economic backbone of low-income and urban communities, accounting for more than half of all private sector jobs. Even in good economic times, small businesses struggle to access affordable capital that allows them to maintain business operations and grow. The recession has magnified the credit problem, with 75 percent of domestic banks implementing stricter lending guidelines for small businesses. The recession has also forced small businesses to develop new business strategies to survive. Services under this area of the initiative include:
Phase 1: Recovery
- › Emergency capital: Seedco Financial provides low loans, typically ranging from $5,000 to $100,000 for cash-flow, working capital, and other recession-related needs.
- › Business stabilization consulting: Seedco is working with its partners to provide a range of technical assistance to small businesses, including help with cash shortfalls; adjustments to pricing, staffing, and inventory; and access to federal, state, and local economic stimulus resources.
- › Employee retention: Seedco provides EarnBenefits services to small businesses. This will help workers obtain income-supporting benefits and connect employers to wage-subsidy programs, employment-related tax credits, and other layoff-aversion incentives.
- › Sustainability and growth financing: Seedco Financial provides low-cost loans, typically ranging from $25,000 to $200,000, for working capital, leasehold improvements, equipment purchases, and other uses to further stabilize employers and allow them to expand and create jobs.
- › Growth and expansion financing: Seedco and partners offer technical assistance focused on long-term strategies. This includes realigning business models, improving bookkeeping or other management systems, or strengthening marketing.
- › Employee development:Seedco connects small businesses to training programs customized to meet employer needs, and will provide ongoing EarnBenefits screenings.