A Verizon study showed that 60% of small businesses that suffer a cyberattack go out of business within six months. "small businesses are target #1 for criminals and represented 43% of all data breaches — often because their false sense of security leads them to not put proper defenses in place. It’s like a homeowner leaving doors unlocked and open because he figures the criminals will go to the wealthier homes up the hill," stated the study.
Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA), announced $3 million in new funding under the Cybersecurity for Small Businesses Pilot Program. Three grants will be awarded to state agencies to provide training, counseling, and other tailored cybersecurity services for startups and emerging entrepreneurs.
41% of small businesses fell victim to a cyber attack in 2023, a rise from 38% in the 2022 report and close to double from 22% in 2021. US small businesses paid over $16,000 in cyber ransoms over the past 12 months.
“With small businesses accounting for 99.9 percent of all American businesses and employing nearly half of the private workforce, any cyber threat to our small businesses is a threat to our country’s overall economy,” said SBA Administrator Guzman.
Applications will be accepted from July 2-Aug. 2, and applicants can apply for awards ranging from $1,000,000 to $1,045,000 for a performance period of 24 months ending September 2026.
Eligible applicants include state and territorial government agencies that seek to provide training, counseling, and other tailored cybersecurity services for startups and emerging entrepreneurs.
The competitive funding opportunity for state governments will support efforts to educate emerging small businesses when they are most vulnerable to cyber threats, and to help them develop robust cybersecurity measures.
SBA’s Cybersecurity for Small Business Pilot Program has awarded nearly $9 million in funding since 2022. Proposals responding to this Funding Opportunity Number SB-OEDCS-24-001 must be posted to Grants.gov under “Cybersecurity for Small Business Pilot” by 11:59 p.m. (EDT), Aug. 2.
About the Cybersecurity for Small Business Pilot Program
Cyberattacks are a growing threat to small businesses and the U.S. economy. According to the FBI’s Internet Crime Report, the cost of cybercrimes against the small business community reached $2.9 billion in 2023. Small businesses are attractive targets because they have information that cybercriminals want, and they typically lack the security infrastructure of larger businesses.
According to an SBA survey, 88% of small business owners felt their business was vulnerable to a cyberattack. Yet many businesses can’t afford professional IT solutions, have limited time to devote to Cybersecurity, or don’t know where to begin. Eligible applicants consist of state governments that seek to provide training, counseling, and other tailored cybersecurity services for emerging small businesses.
46% of all cyber breaches impact businesses with fewer than 1,000 employees. This is according to Verizon's 2021 Data Breach Investigations Report. [1] The percentage of smaller businesses being hit has climbed steadily in the last few years. An earlier study from Symantec found that 43 percent of 2015 attacks hit businesses with 250 or fewer employees; in 2014, the figure was 34 percent.
This pilot program empowers state governments to expand existing services, innovate, adapt to current environments, develop new resources, and scale solutions to assist more small businesses. Additionally, expanding access to underserved and underrepresented small business ecosystems will be a critical marker of success.
How can Integro Bank help?
The U.S. Small Business Administration has issued delegated authority to Integro Bank, an esteemed status within their Preferred Lender Program (PLP). The PLP status is the most desirable accreditation that a bank can receive for small business lending.
In addition to the PLP designation, Integro Bank also received authority as an SBA Express Lender. These approvals mean that Integro Bank is now recognized amongst banks with proven track records of successfully processing, and servicing SBA-guaranteed loans. Integro Bank will be providing enhanced service and opportunities to the Arizona small business community with the new ability to process smaller-sized loans on an express, expedited basis. Working with a bank that is an SBA Preferred Lender provides faster turnaround times and streamlines the overall application process.
Contact us today to learn more about how Integro Bank can support your SBA lending needs.
https://www.integro.bank/Contact-Us