Tweet

U.S. Community Adjustment And Investment Program (CAIP)

Written by: Start Your Business

Article Overview: CAIP is a program established to assist U.S. companies that are doing business in areas of the country that have been negatively affected by NAFTA. Funds administered by Treasury (see below) allow for the payment of fees on eligible loans. These fees include the 7(a) program guarantee fee (and subsidy) and the 504 program guarantee, CDC and lender fees. Depending on the loan size, the fees can be sizeable.

U.S. Community Adjustment And Investment Program (CAIP)

U.S. Community Adjustment And Investment Program (CAIP)

General Description

CAIP is a program established to assist U.S. companies that are doing business in areas of the country that have been negatively affected by NAFTA. Funds administered by Treasury (see below) allow for the payment of fees on eligible loans. These fees include the 7(a) program guarantee fee (and subsidy) and the 504 program guarantee, CDC and lender fees. Depending on the loan size, the fees can be sizeable.

The CAIP works with the SBA in both their 7(a) Loan Guarantee Program and 504 Program to reduce borrower costs and increase the availability of these proven business assistance programs. CAIP can be used with both the 7(a) and 504 Loan Programs

Eligibility

To be eligible, certain criteria must be met; for example, the business must reside in a county noted as being negatively affected by NAFTA, based on job losses and the unemployment rate of the county; this was recently expanded to allow for granting eligibility to defined areas within a county (which will allow SBA to react quickly in offering to provide assistance when, for example, a plant closes).

In addition, there is a job creation component. For 7(a) loans, one job has to be created for every $70,000 SBA guarantees. For 504 loans, one job has to be created for every $50,000 SBA guarantees.

Eligible CAIP Communities

Currently, over 230 counties in 29 states are designated as eligible. Here is a listing of all communities (PDF File)which have been designated as eligible for funding under the Community Adjustment and Investment Program (CAIP). This second file contains the eligible zip codes for urban communities.

Related Articles
  Community Colleges receive Funds for Job-Training Programs
  Who Wants a Coffee Franchise?
  How to Use Community Relations to Grow Your Business
  Community Involvement the Wrong Way
  Your Extended Shadow And Successful Sales Management

Article Tags:



Related Forum Posts
Investment Advisors vs Faciltators - Investment advisors provide advise to investors on public companies or investments. Leadsco is a telemarketing company for advisors - providing leads. Investment advisors will not put you in touch with investors. Violates compliance regulations. Facilitators are the best way to help you with strategy and offering for private investors or venture capital.
Re: How to develop sales contacts? - Everyone has the right idea here. Depending on your business, there are different techniques that you could use. For consultants and sales heavy businesses, there are three tactics that I have found especially useful in my business: 1. Attend Networking Events 2. Cold Calling 3. Referral Program 4. Affiliate Program (most successful) The affiliate program was successful for me, as I hooked up with a franchise consultant, and he gave multiple unit businesses that needed my credit card processing services. I highly suggest you hook up with a sales partner, and give him a cut of the monthly revenue.
How do you "Give Back To the local or world Community?" - Elie Wiesel: This is the duty of our generation as we enter the twenty-first century -- solidarity with the weak, the persecuted, the lonely, the sick, and those in despair. It is expressed by the desire to give a noble and humanizing meaning to a community in which all members will define themselves not by their own identity but by that of others. We want to know what you do to give back to your community. When we say "Community" we mean the Human Community . . .around the corner or around the globe. Don't be humble here . . .This is where we'll all learn from each other. Don't be selfish . . .You BRAG we LEARN. Let's help each other ALL make a difference. . . . One person at a time. If you're not involved now, maybe you could learn how right here. It's never too late to do good.
Which kind of industries are you interested in? - Ecological or E-business or Investment or Finance or Management or Non-Profit or Retailer or others.
Think like an Association - Hey Sebastian, Maybe you could try thinking like an Association... I would study the structure or formats used by other Associations. What are they doing to add value for their members? The BBB plays a monitoring role for consumers by gathering data about business' that are behaving badly. And they're pretty successful at it too. Maybe you can offer a 'Platinum Program' that franchisors buy into. Accredited members only. Criteria could be strict: 1. Age (stability): 10+ years 2. Satisfied franchisees: 85% + satisfaction 3. Size (stability again): 250 units 4. Strong profits 5. Great management -Maybe a 'Gold Program' for those Franchisors that aren't quite at that level, but can strive to reach it... -Top 100, 500, 1000 Listing for qualified members... maybe a slap at Entrepreneur.com and their biased top 10 lists... -Maybe act as a monitor like BBB? -Maybe team up with FranSurvey OR do something similar for each member (not sure about Fransurvey's rep, but I like the concept) There's so much discontent within the franchising arena that I think if you were part of the solution, then you could create a win/win with your Association. The only downside is that this power can get abused if there aren't good checks and balances within the association.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Anger Solutions at Work: Why Customers Get Angry

B2B PR – Planning for Success

Environment and productivity at the office

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.