Everyday we hear about the latest government bailout to Wall Street and the big banks and insurance companies; billions of dollars going to the very same people who helped to create this economic crisis. While at the same time, small business owners and entrepreneurs who had nothing to do with it are suffering with no hope in sight.
Despite the way things seem, however, you have not been abandoned by your government. Although it has not garnered the same headlines as the massive Wall Street bailouts, the Obama Administration has earmarked billions of dollars to specifically help small business owners. Most of the money will be for the U.S. Small Business Administration to increase credit and financing available to small businesses. Here are some of the programs being offered by the SBA under the economic stimulus plan:
- Temporarily eliminating fees – ranging between 2% and 3.7% – on SBA-backed loans
- Raising SBA’s guarantee percentage on some loans from 75% to 90%
- Creating new loan programs to help small businesses meet existing debt payments
- Expanding SBA’s Microloan program for loans under $35,000
Additionally, according to Forbes.com, $15 Billion will be used to purchase securities backed by the SBA-guaranteed loans in an attempt to jump-start the secondary credit market for small businesses. Banks that offer SBA-guaranteed loans have hit a lending wall in recent months, as the secondary market is frozen, so banks can’t get the old loans off their balance sheets to free up capital for new loans. The buyout of the old loans will free up more credit to be available to small business owners who need the money now.
For a free half hour consultation to learn more about financing for small businesses, contact Attorney Chris Ratté.
NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.
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