[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