Stimulus a Big Boost for Microloans
Today President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009 (aka the stimulus bill). Know that the legislation did not come easily for the President. No doubt members of both parties can debate the merits of the legislation, but there is no question that the stimulus will benefit U.S. microenterprises. Here’s a look at some of the federal agencies likely to support microenterprises with stimulus funds.
- Treasury. $100 million for the U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund means a much larger pool of potential funding for CDFI-certified microlenders. Don’t forget to thank your congressperson if you asked them to support this provision!
- HUD. $1 billion for the Community Development Block Grant (CDBG) program means local and state governments around the country will have additional resources to invest in microfinance programs working in their communities.
- SBA. Increased funding for the Small Business Administration (SBA) Microloan Program translates into $50 million worth of additional low-interest loans and $24 million in additional grants to microlenders who provide technical assistance to borrowers.
The Association for Enterprise Opportunity has reported that U.S. microenterprises create close to a million jobs each year. That’s why it’s more important than ever that limited government funds go to support these tiny job creation engines. ACCION USA will be working hard to access some of these funds so that they reach our clients, who are creating jobs and rebuilding Main Streets across the United States.
Update 4/17/09: USA Today covers the funding for CDFIs in the stimulus bill.
June 9th, 2009 at 11:21 am
Excellent post. Very helpful information for everyone.