As you are probably aware by now, the Agency received zero funding for 2013 PRIME grants. This means:
- there will be no application process for new PRIME grants;
- there will be no renewal or option year process for existing PRIME grants;
- funds that were awarded under the FY2012 budget cycle remain intact and you may continue to expend them
- unless an extension has been granted, the last day for which the Agency may be billed is the September date on our Notice of Award (usually September 28, 29, or 30);
- unless an extension has been granted, all requests for final reimbursement against the FY2012 and older grants should be submitted, along with a final report and any research findings, by December 31, 2013. Grantees that do not submit their final reports on time risk losing the final portion of their funding.
Regarding the ILP Program
ILP Lenders are reminded that the program requires that the $1 million SBA loan be committed to small business borrowers within two years the lender’s ILP Note Date. For ILP Lenders selected in 2011, that deadline is quickly approaching. For any questions on program requirements, please contact your Financial Analyst.
If your organization will not loan out the entire amount by the end of the second year, you may choose to exercise one of the following options:
- you may request up to a 12 month extension for lending the funds;
- you may request that any remaining loan funds that have not been disbursed to your organization by SBA be cancelled.
In addition, please be reminded that loan payments for the loans made to Intermediaries under the ILP Program are scheduled to begin two years after the date of the first disbursement. For ILP Intermediaries that received initial disbursements in September 2011, that date is quickly approaching and loan payments will begin on October 7, 2013.
ILP lenders are required to use the Credit Alert Verification Reporting System (CAIVRS) when considering a loan to a small business. CAIVRS is a tool available through the U.S. Housing and Urban Development (HUD) to determine if a potential borrower has either delinquent federal debt or a prior loss which would result in ineligibility for SBA loans. You should have already received instructions, via email, on how to access CAIVRS.
Regarding the Microloan Program
*Our microlending goal for FY2013 is 4,000. Current data indicates 2730 microloans reported through June 30, 2013. While many microlenders are verbalizing increased lending, the report is showing a decrease from last year. Please remember to report your microloans within seven days of the making of the loan.
*A big “Thank You” to all of the microlenders that submitted correct grant budgets. Your timely work has resulted in more than 100 grants already entered in the SBA system. This will make it easier for the Office of Grants Management to process your FY2013 grants. Please make certain that when your organization receives its FY2013 Notice of Award, it is signed and returned in accordance with the instructions to be provided by OGM. Please also send an electronic copy to your Microloan Program Contact Person.
*As noted in the Microloan Program SOP (see paragraph 2.8 and the Appendix) the Credit Alert Verification Reporting System (CAIVRS) is a tool available through HUD to determine if a potential borrower has either delinquent federal debt or a prior loss which would result in ineligibility for SBA loans. Over the next several weeks, your organization will receive instructions, via email, on how to access CAIVRS. Microloan Program participants are encouraged to access this important tool.
*Veteran’s make up about 9% of the population but only about 4% of our microborrowers. As overseas deployments wind down and people exit the service many are seeking self-employment as their next endeavor. Veterans are highly skilled and generally successful in operating small businesses. They are disciplined and well prepared for hard work and long hours. We strongly encourage you to step up your marketing to veterans. We encourage you to include veterans in your pre-loan training and technical assistance; in your portfolio of microloans; and in your post loan training and technical assistance.