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Prince George's business owners last week gave a lukewarm reception to U.S. Small Business Administration officials who presented plans designed to help them ride out the recession.

Owners attending the Prince George's Chamber of Commerce's April 9 presentation in Bowie on the American Recovery and Reinvestment Act — commonly called the federal stimulus package — pelted presenters with concerns that the government is not doing enough. For their part, the presenters urged the owners to explore multiple SBA programs.

The SBA, through the stimulus package, has already temporarily eliminated loan fees for small businesses and fees for Section 504 loans for lenders, along with providing 90 percent guarantees on loans to qualified businesses. Section 504 is designed to help small businesses buy equipment and property.

"These are the first steps," said Bridget Bean, the SBA's district director. "We encourage you to see a [small-business lender] and analyze your situation."

The America's Recovery Capital loan program, another of the nine SBA-related initiatives of the stimulus program, provides loans of up to $35,000 for six months to viable small businesses struggling to pay off existing loans. The SBA is still preparing to launch the program, which will back loans 100 percent and defer repayment for 12 months.

"We need to eliminate the burden of low cash flow for small businesses in order to get them back on their feet," Bean said, adding that the program should be running within the next few months.

Some business owners argued that $35,000 is too small for a bridge loan, saying the "viable business" requirement is vague, as businesses needing loans may no longer be viable. Others cautioned that the economy may still be down in 12 months, so the deferral period is not long enough.

"Companies are in crisis," said Odessa Hopkins, CEO of Another Approach Enterprises in Upper Marlboro. Banks continue to request high credit scores from businesses seeking loans, she said.

Bean said the SBA is working to make sure lenders know of its programs, but it is always a challenge ensuring that they actually make loans. The SBA is developing a program to help broker-dealers who buy guaranteed small-business loans. This couples with the Treasury's commitment of up to $15 billion to purchase small-business loan guarantees and certain first mortgages, helping free up the small-business lending market.

Bean said the SBA is trying to be both fast and strategic in rolling out its plans.

Other business owners pushed for grants, which the SBA generally does not provide. They were responding to Bean's comment that the SBA is surveying business owners on their needs. Bean said the only grant SBA offers is a consulting expenses grant within its Strategic Assistance Consulting Fund.

Carolyn Cuff, business strategist with the Grant Funding Center in Lanham, a division of High TechMinds Multimedia, said businesses should first consider community involvement before they go asking for free money. The Grant Funding Center helps businesses develop community service-based nonprofit spinoffs.

Anthony Ruiz, chairman of the chamber's small and minority business committee, emphasized that the SBA shops around for loans so that businesses get the best deals. Ruiz is also the regional director of the Capital Region at the Maryland Small Business Development Center Network, an SBA partnership program.

"We cannot do it all," Ruiz said, adding that businesses should avail themselves of all resources.

SBA loans

Of the $18 billion SBA-backed loans made in 2008, 35 percent went to startups, 32 percent went to minority-owned businesses and 23 percent went to women-owned businesses.

The most frequently financed industries were services, retail trade, accommodation-food service, construction and manufacturing.

SBA classifications as a "small business" vary by revenues and number of employees as determined by industry sector. Information: www.sba.gov/size.

Source: U.S. Small Business Administration