FEDERAL AGENCY:

SMALL BUSINESS ADMINISTRATION

AUTHORIZATION:

Small Business Act of 1953, as amended, Section 7(j), Public Law 85-536, as amended.

OBJECTIVES:

The purpose of the program is to provide Business Development Assistance for Socially and Economically Disadvantaged Businesses. SBA performs this mission by entering into grants, cooperative agreements and contracts with qualified service providers who have the capability to provide business development assistance to eligible businesses and individuals under Sections 7(i), 7(j) and 8(a) of the Small Business Act.

TYPES OF ASSISTANCE:

Project Grants. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

Financial assistance under this Section may be given for projects that respond to requirements as outlined in each respective program solicitation announcement, or for an unsolicited proposal that could provide valuable business development assistance for 8(a) and other socially and economically disadvantaged small businesses and individuals. Types of business development assistance may include: Accounting and marketing services, proposal/bid preparation workshops, feasibility studies, marketing/presentation analyses and advertising expertise, loan packaging, industry specific technical assistance and other specialized management training and technical services. The program funds can also be used to establish and strengthen business service agencies, including trade associations and cooperatives. The 7(j) program funds are not available to finance or purchase a business nor are they available to use as expansion capital for an existing business.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Educational institutions, public or private organizations and businesses, individuals, State and local governments, Indian tribes and lending and financial institutions and sureties that have the capability to provide the required business development assistance.

Beneficiary Eligibility:   8(a) program certified firms, small disadvantaged businesses, businesses operating in areas of low-income or high-unemployment, and firms owned by low-income individuals.

Credentials/Documentation:   As specified in the individual "Request for Application Proposals." Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments and OMB circular No. A-21 for educational institutions.

Pre-application Coordination:   This program is excluded from coverage under E.O. 12372.

Application Procedure:   Application proposal forwarded to District Office Director for appropriate geographic area. (See Appendix IV under Small Business Administration for a listing of field Offices.) The standard application forms as furnished by the Federal agency and required by OMB Circular No. A-102 must be used for this program by State and local governments. This program is subject to the provisions of OMB Circular No. A-110.

Award Procedure:   Decisions on acceptance are made by the Office of Procurement and Grants Management based upon recommendations of the Assistant Administrator for Management and Technical Assistance, Office of Business Development. The Grants Management Officer notifies successful applicants by Notice of Award.

Deadlines:   As announced within individual "Request for Application Proposals."

Range of Approval/Disapproval Time:   Variable.

Appeals:   Not applicable.

Renewals:   Contact the Federal agency.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   None.

Length and Time Phasing of Assistance:   Awards are made for a maximum of 1 year with options as stated in the individual announcements. Disbursements are made within a few days of receipt of all required documents along with the request for disbursement. Disbursements are made in partial payments based on work successfully performed.

POST ASSISTANCE REQUIREMENTS:

Reports:   Program and fiscal reports, as described in each award. A final report is also due within 30 days after completion of agreement.

Audits:   Pre-award accounting system survey. Final audit by a certified or licensed public accountant. Other audits are required by SBA. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non- Profit Organizations," nonfederal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records:   Appropriate records as needed for above requirements.

FINANCIAL INFORMATION:

Account Identification:   73-0100-0-1-376.

Obligations:   (Grants) FY 01 $3,599,955; FY 02 est $3,600,000; and FY 03 est $10,000,000.

Range and Average of Financial Assistance:  
No data available.

In fiscal year 2001, 14 cooperative agreements and 3 contracts were awarded thereby providing management and technical assistance to approximately 3,000 7(j) eligible clients.

REGULATIONS, GUIDELINES, AND LITERATURE:

Fact sheet upon request.

INFORMATION CONTACTS:

Regional or Local Office:  
See Regional Agency Offices. SBA District Offices listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration. See District Offices and contact info at https://www.sba.gov/tools/local-assistance/districtoffices.

Headquarters Office:  
Jackie Robinson-Burnette 409 3rd St., SW 8th Floor, Washington, District of Columbia 20416 Email: jackie.robinston-burnette@sba.gov Phone: 202-205-5852

Web Site Address:  
http://www.sba.gov

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

As described in each announcement.