Memorandum on Providing Loans to Small Businesses Facing High Energy Costs

Memorandum for the Administrator of the Small Business Administration

Subject: Providing Loans to Small Businesses Facing High Energy Costs

Increased demand for energy and a colder than normal winter has led to higher than normal energy costs. Because many small businesses lack significant capital reserves, they may lack the resources or cash flow to meet higher energy bills.

In order to assist such businesses, I am directing you to begin aggressive outreach programs to potential borrowers, SBA lenders, and other partners to make them aware of the SBA lending and technical assistance programs that are available to assist small businesses that may need assistance in meeting energy bills. SBA-guaranteed loans offer eligible small businesses sufficient cash to continue to meet their immediate energy needs and will allow them to spread their energy payments over a longer period than the payment period typically provided by their vendors.

WILLIAM J. CLINTON