Understanding the Small Microenterprise Development Organization: A Legal Perspective

Definition & Meaning

A small microenterprise development organization is defined as an organization with fewer than ten full-time employees, including its executive director. This definition is established under 13 CFR 119.2, which pertains to programs designed to support microentrepreneurs. These organizations typically focus on providing resources, training, and financial assistance to individuals seeking to start or grow small businesses.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A nonprofit organization that provides training and microloans to local artisans, employing eight staff members, qualifies as a small microenterprise development organization.

Example 2: A community-based program aimed at helping low-income individuals start their own businesses, with a team of six full-time employees, is also classified as such. (hypothetical example)

State-by-state differences

State Notes
California Offers additional funding opportunities for microenterprise programs.
New York Has specific grants available for organizations assisting minority-owned microenterprises.
Texas Focuses on rural microenterprise development with tailored support programs.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Microenterprise A small business typically with fewer than five employees. Microenterprises may not have formal development programs.
Small Business Development Center (SBDC) A program that provides advice to small businesses. SBDCs may serve larger businesses and do not have employee limits.

What to do if this term applies to you

If you are part of a small microenterprise development organization, consider applying for funding through the SBA's PRIME program. Ensure you meet all eligibility criteria, including the employee limit. For assistance, you can explore US Legal Forms' templates to help you navigate the application process. If your situation is complex, seeking professional legal advice may be beneficial.

Quick facts

  • Typical organization size: Fewer than ten employees
  • Primary focus: Supporting microentrepreneurs
  • Application requirement: Must apply for SBA grants

Key takeaways

Frequently asked questions

These organizations aim to provide resources and support to individuals starting or growing small businesses.