The U.S. government has come to the rescue of small firms impacted by the North American Free Trade Agreement (NAFTA). Firms in 35 designated communities nationwide can apply for loan guaranties of up to $750,000 through the Small Business Association's (SBA) 7(a) loan program, the North American Development Bank (NADBank) or the Department of Agriculture's Business and Industry Loan Program. The cost of the loans and loan guaranties will be underwritten by NADBank.
Eligible businesses must be located in one of the designated impacted areas, meet conventional SBA loan standards and size requirements, and be able to show that proceeds will help the company create or retain one job for every $35,000 loaned.
The loans are part of the NAFTA Transitional Adjustment program run by the same organizations offering the loans, and are open to businesses in communities where unemployment is at least 6.5 percent. For more information, contact your local SBA office.