With the falloff in residential and commercial construction in many markets, some construction contractors have considered expanding their revenue horizons by investigating contracts funded by the American Recovery and Reinvestment Act of 2009.
However, locating, pursuing, and meeting the requirements of government contracts is vastly different from private sector work. Construction professionals should be aware of some of the key challenges and best practices of government contracting.
To get started, spend some time examining where contract dollars are spent in your area and which companies are winning contracts. The databases at www.usaspending.gov and www.fedspending.org contain a wealth of free information.
Last week, the U.S. House of Representatives passed HR 3854, the Small Business Financing Investment Act (the Act). The Act updates the Small Business Administration’s (SBA) capital access program, allowing an expected $44 billion dollars to become available to small businesses every year. The updated program is expected to save or create 1.3 million jobs annually.
Specifically, the Act will increase the maximum loan size, streamline the application process, create an Early-Stage Investing Program for start ups, and make permanent several provisions from the American Recovery and Reinvestment Act of 2009.
While small businesses are finding a largely more closed lending environment than last year at the same time, SBA loans are up recently due largely to American Recovery and Reinvestment Act (ARRA) guarantees. CNN Money reports that a year-to-year comparison shows the long road still ahead for lenders.
Here’s a telling statistic about the toll the recession is taking on Main Street: This year, the government’s top small business lending program got loans to 25,000 fewer entrepreneurs than it did last year.
With November just on the horizon, small-business owners have a limited time to access fee-free SBA loans before they revert to pre-Recovery status. The Wall Street Journal has six tips to speed up the approval process.
Attention small-business owners: Time is running out on an opportunity to access fee-free business loans that are guaranteed up to 90%.
Earlier this year, the Small Business Administration set aside $375 million to temporarily eliminate loan fees and increase the agency’s loan guarantee to 90% for certain loans. The moves were part of the American Recovery and Reinvestment Act (ARRA), which was signed into law by President Obama in mid-February. So far, the SBA has used about 55% of those funds; they have translated to $6 billion in loans under the 7(a) and 504 programs, says John J. Miller, an SBA spokesman.
“In previous recessions, the SBA has filled the gaps in private capital markets,” said Velázquez. ”Today, that is not the case. Loans funded by the SBA’s flagship program have seen double digit declines, meaning, when we need the SBA to step in and help lift the capital markets, they are actually doing less. This is a result of poor policy decisions, inept management and a lack of funding at the agency over the last eight years finally taking its toll on the programs.”
ARC loans are designed to provide immediate capital to small businesses to assist with existing debt payments. Qualifying loans include credit card debt for your business, capital leases, notes payable to vendors and suppliers, Development Company Loan Program (504) first lien loans, other loans to small businesses made without an SBA guaranty, and loans made by or with an SBA guaranty on or after February 17, 2009.
While small businesses are finding a largely more closed lending environment than last year at the same time, 
With November just on the horizon, small-business owners have a limited time to access fee-free 
