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State Small Business Credit Initiative

Alabama small businesses seeking funding to start or expand a business could be eligible for a business loan.

Office of Minority Business Enterprise

Administers a certification program to identify small, minority-owned and women-owned businesses capable of providing goods/services to government and private sectors.

Alabama SAVES

Financing program that provides low interest rate loans for commercial and industrial energy-efficiency and renewable energy projects in Alabama.

Surplus Property Program

For a small service fee, businesses enrolled in the Small Business Administration’s 8A program may establish eligibility to obtain items from ADECA’s Surplus Property Division.

ADECA News

ADECA’s latest news releases provide information as to how funds are being used to enhance communities.

Recreational Programs

Learn about ADECA’s Recreational Trails Program and a variety of recreational trails Alabama has to offer.

Frequently Asked Questions

See below for a list of the most common inquiries about the programs, initiatives, and regulations of the Alabama Department of Economic and Community Affairs. How do I know if I qualify for a Small Business Loan and what information will I need to provide to apply for this loan?

Talk with a banker whose bank has qualified to participate in the State Small Business Credit Initiative (“SSBCI”) Program. The banks actually underwrite the loan and they will tell you what they must have in order to review your request.

If approved by the bank, and the bank chooses to use the SSBCI program, how long will it take the SSBCI to respond to the bank?

The SSBCI will respond in 3 to 5 business days for requests up to $1 million and in 7 to 10 business days for requests over $1 million. The maximum loan amount is $5 million.

What is the maximum term of an SSBCI loan and what is the rate of interest that will be charged?

The maximum is a 5-year term (balloon) and the loan may be amortized over 15 to 20 years. The term and the rate of interest is negotiated between you and your bank.

If a new business is seeking certification under the Office of Minority Business Enterprises (OMBE) and does not have the required two years of tax records or financial statements to provide with the application, how should they proceed?

If no tax records are available, the business owner should work with the Small Business Development Center (SBDC) in his/her area. The SBDC will help the new business owner prepare a small business plan that should be submitted with the OMBE application.

Is there a cost or filing fee included with the OMBE application?

No, there is no cost or filing fee for an OMBE application.

What happens after my business is certified by OMBE?

The business name and the services provided by the business are put into a database maintained by the OMBE. When the OMBE receives an invitation to bid for state services, that invitation will be sent to the businesses in the database which meet the criteria to bid.

To qualify for an AlabamaSAVES loan, must the business own the building to which energy improvements are being made. Can the loan be used for the purchase or construction of a building?

The borrower must either own the building or have a long term lease that is at least the length of the loan term. AlabamaSAVES loans are for energy improvements to existing facilities and cannot be used for new construction.

Is there a regular funding cycle or application deadline for AlabamaSAVES loans?

There is no loan application deadline for AlabamaSAVES loans. Applicants are accepted on a rolling basis and processed as soon as all program requirements are met and relevant documents received.

As a Small Business Administration 8A, how does my organization or business apply to be eligible to purchase surplus property?

8A organizations or businesses should contact the regional Small Business Administration office in Birmingham, Alabama to obtain the initial application form. Call 205-731-0706 or visit www.sba.gov.

If my small business is not approved to participate in the Alabama Surplus Property Program, is there still a means to acquire surplus property.

Yes, the Montgomery Surplus Property Warehouse, located at 4590 Mobile Highway, Montgomery, Alabama, holds three public auctions through-out the calendar year. Email notification of a Public Auction is available by contacting Deborah Johnson at 334-284-0577. Property purchased at Surplus Property Division’s public auction is considered personal property (of the highest bidder).

 

Contact Information

Jim Byard, Jr., Director 401 Adams Avenue Montgomery, AL 36104 Phone: (334) 242-5100 contact us

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