The U.S. Small Business Administration has seen a flurry of activity this year, going so far as to temporarily halt its SME lending operations because it had reached its cap (lawmakers soon after raised that cap, and the SBA commenced lending again).
Last week reports said the SBA is taking a new direction in some of its small business financing services and this time they involve collaboration with venture capitalists.
Late last week reports said the SBA inked a deal with Velocity Venture Capital’s Entrepreneur Showcase in an effort to get more connected to small businesses and startups. The showcase is an annual event that provides training and education services to startups and their owners, with Velocity Venture Capital providing guidance on their business models.
“It is a way to help the SBA in getting connected with entrepreneurs in the tech area,” said Carrie Ellinwood, the SBA’s lending relations specialist at its Sacramento office. “They are going to collaborate with us on training and classes.”
While the SBA generally focuses less on startups, reports said the agency does have several programs geared towards the demographic. Working with Velocity means the SBA will be able to open communication with more business owners in this community.
[bctt tweet=”Working with Velocity means the SBA will be able to open communication with more startups.”]
According to reports, the showcase will also be providing startups with information on the SBA’s services to early-stage companies.
“Early-stage ventures are of particular interest to SBA and are critical to the economy as it continues to build positive momentum,” said SBA Sacramento District Director Joe McClure in a statement.
It is unclear whether the SBA will be looking to provide financing to the startups that participate in the showcase or whether the collaboration is simply a way to facilitate communication between the two.
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