The U.S. Small Business Administration (SBA) announced a $7.2 million grant award to 38 organizations under the Program for Investment in Micro-Entrepreneurs (PRIME), a $1.7 million increase, up 30% from last year’s allocated $5,500,000 in funding. The PRIME award will support these nonprofit organizations as they help low-income entrepreneurs get financing to establish and expand their small businesses or provide capacity-building training for other organizations that provide capital to underserved small businesses.
In line with the President’s mission of creating an economy that works for all, Administrator Guzman has led the SBA to prioritize equity through all its offerings and increasing support for entrepreneurs from underserved communities at each stage of the entrepreneurship journey. PRIME helps execute the above strategic goals and others outlined in the Agency’s Equity Action Plan, aimed at lowering barriers to accessing capital while deepening engagement with trusted community organizations.
“Our SBA PRIME grants provide critical support for nonprofit organizations that are delivering needed technical assistance and training to America’s small businesses so they can continue to power our nation’s strong economic recovery and transition to strong, stable growth,” said SBA Administrator Guzman. “This year, the SBA focused our PRIME grant selection process on our nonprofit partners who can best bring federal resources to life, especially in the regions and communities where they are needed most. I look forward to working with these organizations as they help us connect America’s entrepreneurs with the capital they need to start, grow and build resilient businesses.”
Congress established PRIME as part of the Program for Investment in Microentrepreneurs Act of 1999. Grant funds will be made available on September 30, 2022, and the project period for each grant is one year. The SBA placed special emphasis in this year’s competition on projects that will offer training and technical assistance to strengthen economically disadvantaged businesses, particularly those that service entrepreneurs in rural areas and foreign language-speaking small business owners.
The PRIME grants range from $75,000 to $250,000 and typically require at least 50 percent in matching funds or in-kind contributions.
Find more information on the SBA’s PRIME grants and a list of this year’s grantees here.