FUNDING ALERT: SBA PRIME Grant Application Is Now Open

From our colleagues at SBA:

Today, the SBA’s Program for Investment in Micro-Entrepreneurs (PRIME) grants opportunity will be opened on grants.gov. 
 
The SBA’s PRIME provides assistance to various organizations. These organizations help low-income entrepreneurs who lack sufficient training and education to gain access to capital to establish and expand their small businesses.
 
There are several types of organizations that are eligible for PRIME grants. These organizations include:

• Micro-enterprise development organizations or programs that have a demonstrated record of delivering micro-enterprise services to disadvantaged micro-entrepreneurs;
• Intermediaries, such as private, nonprofit entities serving micro-enterprise development organizations;
• Micro-enterprise development organizations or programs that are accountable to a local community, working with a state or local government or Indian tribe; and,
• An Indian tribe acting on its own, if the Indian tribe can certify that no private organization or program exists within its jurisdiction. 

Types of Grants Available Through PRIME

• Technical Assistance Grant: Provides training and technical assistance to disadvantaged micro-entrepreneurs.
• Capacity Building Grant: Provides training and capacity building services to micro-enterprise development organizations and programs to assist them in developing micro-enterprise training and services.
• Research and Development Grant: Aids in researching and developing the best practices in the field of micro-enterprise development and technical assistance programs for disadvantaged micro-entrepreneurs.
• Discretionary Grant: Conducts such other activities determined to be consistent with these purposes. 

Grant Allocation
 
The SBA’s goal is to serve diverse populations by awarding grants to both large and small micro-enterprise development organizations as well as those serving urban, rural, and Indian tribal communities. At least 50% of the grants are awarded to qualified organizations that benefit very low-income persons, including those residing on Indian reservations.
Available funding is allocated as follows:

• Minimum of 75% for Technical Assistance Grants
• Minimum of 15% for Capacity Building Grant
• Remaining 10% or less for Research and Development Grants or Discretionary Grants

Minimum and Maximum Award Amounts

• The minimum for Technical Assistance and Capacity Building Grants: $50,000 during the first year of the award, subject to the availability of funds.
• There is no minimum for Research and Development or Discretionary Grants.
• The maximum that an organization may receive in any fiscal year from one or more awards is the lesser of $250,000 or 10% of the total funds available that year.

Funding Limits

• Generally, the funding period for a PRIME grant is one year.
• Funding may be available on an annual basis for a project period of up to five years.
• For Technical Assistance and Capacity Building Grants, after the initial grant, funding for additional year(s) must be no more than 67% of the initial grant amount.
• For Research and Development and Discretionary Grants, after the initial grant, funding for additional year(s) will be approved at the discretion of the SBA.
• In the final year of a project, if additional time is needed to complete the original scope of work, grantees may request a one-time, no-cost extension, not to exceed 12 months.

How to Apply
 
To apply for a PRIME grant, visit grants.gov and search 59.050 under CFDA numbers. You may also search the title of the opportunity, which is PRIME-2019-01.