A Civil Servant Writes To Say That What We Said About The SBA And Minorities Was "Is All A Lie"
Print Friendly and PDF

Re: A Reader (Who Donated!) Reminds Us That American Small Businessmen Are Being Displaced By Immigrants With The Aid Of Federal Funds

From: Mike Stamler,  Director, Small Business Administration Press Office [Email him]

The stuff about SBA in this article is all a lie, you know. SBA does not have even one single loan program for minorities, no programs for providing funding of any kind only to minorities, or mostly to minorities, or anything of the kind.  Not one.

James Fulford writes: A search of SBA.gov using the term "minorities" comes up with the results below:

Are you ready to start your business, but don't know where to start or what opportunities are out there for minority groups? The following resources provide ...
Minorities. SBA is a strong advocate of minority and special audiences, and we know doing business with the government, also called government contracting, ...
I've pasted a sample of what's on the Minority Owned Businesses page. Only about a thousand words, but as you can see, it represents about a zillion dollars of various kinds of money. Included in this "come-and-get" list of various kinds of money available strictly for minorities, is the statement that "Federal and state government agencies do not provide grants to minorities for starting a business. However, there are a number of low-interest loan programs that help individuals obtain startup financing. "
I suppose that's the rationale for Mr. Stamler's saying that we're lying. Our complaint here, by the way, is not that the Small Business Administration is helping minorities, although we might complain about that another day, but that the SBA is directing  American money to recent immigrants (frequently named Patel) and that this minority development money is being used to displace American businessmen.
See this PDF of a "success story" from the SBA:

FAIRMONT - Entrepreneurship is a familiar word to Chirag Patel. He was just 5 years old when his parents, Pravin and Tara, relocated to West Virginia from New Jersey to open the Heldreth Motel and Restaurant in Kingwood. That small business venture has expanded to eight motels stretched over three states. His grandparents operated small businesses in Tanzania (Africa) and the Fiji Islands more than 50 years ago. Growing up the son and grandson of small business owners, and experiencing firsthand the rewards and benefits of small business ownership, Patel was destined to follow the same path.

Patel is currently President and Chief Executive Officer of DN American, an information technology company certified in the U.S. Small Business Administration’s 8(a) Business Development and Small Disadvantaged Business programs. DN American is located at the West Virginia High Technology Park in Fairmont, W.Va.[More]

So Chirag Patel's parents were immigrants, started a motel, for which they qualified for SBA minority assistance. Their son goes to college, founds an IT company and  still qualifies for the 8 (a) Business Development Program!
Here's the rest of the programs the SBA, in some sense intelligible to the mind of the civil service, does not have:


Minority Owned Businesses Are you ready to start your business, but don't know where to start or what opportunities are out there for minority groups? The following resources provide information on federal government programs and services that help members of minority groups start their own businesses, as well as resources to help finance your new business and where to go to get training and assistance. Federal Programs and Resources Provides information on a program sponsored by the SBA that helps businesses in historically underutilized areas gain access to federal procurement opportunities. Details how to finance a business as well as business opportunities from a federal agency created specifically to foster the establishment and growth of minority-owned businesses in America. Explores the issues affecting the growth and development of minority business enterprises, discussed at this federally-sponsored, national conference. Covers programs and services that help small, disadvantaged businesses compete in the American economy and federal procurement market. Outlines programs and resources that are available to American Indians, Native Alaskans and Native Hawaiians seeking to create, develop and expand small businesses. Back to Top Starting Your Business What are you waiting for? Get started today by checking out the steps and guides to starting your business. Gives free tips, advice, checklists and more. Lists the legal and regulatory steps you need to take to start a new business. Supplies access to resources to help you prepare a winning business plan. Back to Top Financing Your Business Federal and state government agencies do not provide grants to minorities for starting a business. However, there are a number of low-interest loan programs that help individuals obtain startup financing. Some nonprofit and local organizations provide a small number of grants to help minorities and those in economically disadvantaged communities to start and expand businesses. Visit the Loans and Grants Search Tool to get a full list of grant, loan and venture capital programs for which you might qualify. Below are some programs that also may be useful to you. Offers flexible loans (up to $50,000) to small business owners who have limited or no access to traditional business credit, including women and minorities. Provides financing for Indian-owned businesses that significantly contribute to a Tribe's economy. Makes and guarantees loans to approved socially disadvantaged applicants to buy and operate family-size farms and ranches. Offers a low collateral loan program geared toward small businesses, including minority and women owned businesses. Provides low cost loans up to $7,500 to Native Hawaiians who are experiencing temporary financial hardship due to unforeseen events, or who wish to enhance their careers. Aids small businesses that are 51 percent owned and managed by persons who are minorities, women, or disabled, with loans up to $50,000 or 50 percent of a total project. Provides loans, loan guaranty and equity grants of up to $50,000 to help women, minorities and persons with disabilities start and expand their businesses. Offers financing programs for women-owned, minority-owned businesses. Provides financing for borrowers who, for various reasons, might have difficulty in obtaining conventional loans. Borrowers must apply for a loan through a lending institution. Assists new and existing minority businesses in gaining access to needed capital in the form of direct low-interest loans. Offers grants to assist a current Native American business or a new Native American business owner. The funds are available only to enrolled members of Montana’s federally recognized tribes in Montana and to enrolled members of the Little Shell Chippewa Tribe. Offers loans to help start-up and expansion of Native Hawaiian owned businesses. Makes microloans available to any new or existing business or community development project that is located on or near the Winnebago Indian Reservation. Provides financial support to small, women- or minority-owned businesses, manufacturers, redevelopers and nonprofit organizations in the following endorsed New Jersey municipalities: Camden, Trenton, Newark, Jersey City, Paterson, Elizabeth, East Orange, New Brunswick and Atlantic City. Assists businesses and nonprofits that provide positive social benefits, meet other special requirements, and are unable to access loans from traditional sources, such as banks. Particular emphasis is placed on helping low-income people, women and minorities. Lists the organizations that provide microloans to businesses that often do not qualify for bank loans, as well as one-on-one counseling and business development assistance to facilitate credit-readiness. Funds are provided by the state's Community Development Financial Institution Assistance Program. Provides loan guarantees for fixed assets for small business (start-up or existing business expansion) for projects of $100,000 or less. The state has targeted 50 percent of the guarantee funds for allocation to businesses owned by minorities and women. Provides direct loans for businesses locating or expanding in Ohio that demonstrate they will create new jobs for Ohio citizens. Offers low-interest loan financing to businesses owned and operated by ethnic minorities. Funds may be used for fixed assets including land and building acquisition; building, construction and renovation; machinery and equipment acquisition and installation; and working capital. Gives financial assistance to new, expanding and existing businesses in Tennessee that do not have reasonable access to capital markets and traditional commercial lending facilities. Provides an interest rate subsidy on lender financing to women or minorities who start or expand a business.


Print Friendly and PDF