Small Business Loan Bailout
April 9, 2009
Remember, this is the agency responsible for the outreach, licensing, and implementation of, you guessed it, money into the pockets of small businesses. This is done through private licensed lenders who have agreed to join the SBA program. In other words, if your local community bank has a commercial loan department, it might very well have a SBA department which makes these loans. Net effect–more loans will be available for small business concerns. Is anyone out there loaning to small businesses anymore?
Before we talk about how much more money is available to the SBA under the stimulus package, let’s look at the current status of one of the popular SBA loan programs. There is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account.
Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.
During the Bush Administration tenure, they could easily have renamed the agency the ISBA (Ignore Small Business Association). The point is we have a new administration that actually likes small businesses. Remember these are additional monies over and above the SBA’s current budget . The SBA has already received their budget. This is whipped cream placed on the top of that small business cake.
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