Understanding Overmatched Amount [Small Business Development Centers]: Key Insights

Definition & Meaning

The term "overmatched amount" refers to the contributions made by non-Federal sources to the costs associated with Small Business Development Center (SBDC) projects. These contributions can include cash, in-kind donations, and indirect costs that exceed the minimum amount required by law. Essentially, it represents additional financial support that enhances the resources available for SBDC initiatives.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A local business contributes $10,000 in cash and $5,000 worth of services to an SBDC project, where the statutory requirement is only $8,000. The total overmatched amount in this case is $7,000.

Example 2: A nonprofit organization provides office space valued at $15,000 for an SBDC program, while the required contribution is only $5,000, resulting in an overmatched amount of $10,000. (hypothetical example)

Comparison with related terms

Term Definition Differences
Matched Amount The minimum required contribution from non-Federal sources. The matched amount is the baseline, while the overmatched amount exceeds this baseline.
In-Kind Contribution Non-cash contributions that provide value, such as services or goods. Overmatched amounts can include in-kind contributions, but not all in-kind contributions are considered overmatched.

What to do if this term applies to you

If you are involved in an SBDC project and have contributions that exceed the required amount, ensure you document these contributions accurately. Consider using US Legal Forms to access templates for reporting and managing these contributions. If your situation is complex, seeking professional legal advice may be beneficial to ensure compliance with all applicable regulations.

Quick facts

  • Overmatched amounts include cash, in-kind contributions, and indirect costs.
  • These contributions must exceed the statutory minimum required by law.
  • Documentation is essential for verifying overmatched amounts.

Key takeaways

Frequently asked questions

The minimum contribution varies based on specific project requirements and can be found in the relevant SBDC guidelines.