Small businesses and family farms are the backbone of our economy.  They are creating 80 percent of the new jobs today and serve as important anchors in our communities.  In a time when we are working through the most difficult economic environment since the Great Depression, it is important to listen to these local businesses and continue to support their needs.  I believe it is these community businesses that will pull us out of this recession.

I recently held a small business forum at UW-L with Eric Ness, Director of the Small Business Administration of Wisconsin; Jeff Hudson, USDA Rural Development Loan Specialist,; and Jan Gallagher, UW-L Small Business Development Center Director; where we discussed programs available to support small businesses and family farmers.  

The American Recovery and Reinvestment Act (ARRA) attempts to unlock tight credit markets so small businesses have the resources to make investments and create jobs.  Through numerous programs, the Recovery Act is working to support small business owners and family farmers who need assistance to endure this downturn and get back on the road to recovery. ARRA is expected to generate $21 billion in new lending and investment for small businesses through a number of programs run by the Small Business Administration (SBA) and USDA Rural Development.  

Through the SBA, the America’s Recovery Capital (ARC) loan program will provide needed capital to entrepreneurs and lenders by offering deferred-payment, interest-free loans of up to $35,000 to viable small businesses that need help making payments on an existing, qualifying loan for up to six months. This program is intended to give small businesses an immediate cash injection to cover existing debts in order to maintain existing jobs and create additional jobs in the long run.  Through increased access to capital markets, which reduces the cost of loans and temporarily eliminates some fees, small business owners will be more easily able to secure SBA-backed loans.  Beginning July 1, the SBA will also offer the Floor Plan Financing Program to help auto dealers refinance their inventory, keeping assets intact and preserving countless jobs.  

Through USDA Rural Development, the Rural Business Enterprise Grant Program has received approximately $20 million in funding for a variety of programs to support business development in rural areas.  Program expansion has also facilitated the Business & Industry Guaranteed Loan Program in providing assistance to lenders to finance business improvement and development to improve the economic climate.  To support our small businesses and their participation in the global economy, broadband Internet services will be expanded in rural areas currently without sufficient access.

The availability of capital is the lifeblood of businesses and that’s what these programs are all about.  I encourage small business owners, family farmers, and entrepreneurs in western Wisconsin to take advantage of the resources and programs available in this tough time.  As innovative leaders in industry and technology, I know that our small businesses play an important role in both the state and national economy. I want to make sure that our small businesses are provided every opportunity to succeed so they can continue to serve as an important source of employment and an anchor to our local community.

For more information about these programs you can contact:

My office: (888) 442-8040

Small Business Administration Wisconsin Office: (608) 441-5541  
http://www.sba.gov/recovery/

Wisconsin Rural Development: (715) 345-7615
http://www.rurdev.usda.gov/wi/index.htm