SBA Loan? Get in Line.
SBA Loan? Get in Line.
Since it’s inception in February of 2009, the American Reinvestment and Recovery Act has funneled $680 million into programs supporting more than $27.5 billion in lending to more than 60,000 small businesses nationwide, according to SBA Administrator, Karen Mills. In the tight credit climate, loans backed by the US Small Business Administration with reduced fees and increased guarantees have seen a huge rise in popularity
Just as small businesses have begun to rely more heavily on the federal government for help in opening up shop, growing or simply staying afloat, that ride is coming to a halt. The money supply, once again, is all tapped out.
Borrowers now have to get in line via the “Recovery Loan Queue,” a waiting list for those hoping Congress will come through with yet another extension to the SBA loan program. In typical government fashion, this legislation isn’t likely to move quickly, leaving small business hanging. Banks still can’t lend because they have to reserve cash for potential loan losses and Asset-based lenders are forced to be choosey given the large number of loan applications they receive.
Small business is the engine of our economy and should be at the front of the line for cash instead of the back. There are many commercial financing firms which are dedicated to finding the best source for liquidity and making certain business owners get the best terms possible. It’s always a good idea to look around at options…even while waiting in line.