Republicans Stymie Small Business Loan Bill
A Democrat-sponsored bill to stimulate up to $300 billion in lending to small businesses has been mired in a game of political football. Republicans refused to allow the bill to go to a Senate vote. The reason: Democrats refused to consider Republican amendments to extend tax breaks and cap federal spending.
- $30 billion in federal money to fund $300 billion in loans
- Republicans wanted to add tax and spending cuts
- Small businesses turn to SBA and unconventional sources for loans
Business Lending Crimped by Economy, Politics
The bill would have put $30 billion dollars in the hands of smaller banks to encourage them to lend to small businesses. The banks could loan as much as $300 billion against that amount. In addition to blaming the Democrats for not considering their amendments, Republicans tarred the measure as promoting risky lending like the kind that preceded the credit crisis.
Startups and small businesses face many challenges, including finding financing. Small businesses need to get creative, especially in a down economy. Business owners should seek out unconventional financing sources. Sam’s Club, for example, recently announced a plan to loan up to $25,000 to its small business members.
The Small Business Administration provides all kinds of help to small businesses, particularly financing help. The SBA’s America’s Recovery Capital Loan Program makes loans of up to $35,000 to businesses facing immediate distress. The loans must be used to keep current on existing indebtedness. The idea is to free up working capital for ordinary business operations. The program expires September 30th, so if you need money, get cracking.
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