The credit freeze continues to squeeze the finances ofmost businesses especially small and mid-sized companies who have fewerfinancing alternatives than large companies.

The recently passed economic stimulus bill [1]contains financing good news and bad news for small business owners.

The good news – the bill authorizes an additional $660million for programs to aid small businesses:

  • $375 million for temporary fee reductions oreliminations on SBA loans and increased SBA guaranteed shares, up to 90 percentfor certain loans
  • $255 million for a new loan program to help smallbusinesses meet existing debt payments
  • $30 million for expanding SBA’s Micro loan program,enough to finance up to $50 million in new lending and $24 million in technicalassistance grants to micro lenders

The bad news - $660 million is less than 1% of thetotal spending and tax reductions authorized under the bill for a segment ofthe economy which employs more than half of the nation’s workers.

Still, any help is welcome in a storm. Ask your banker orother financial advisors about SBA programs that might benefit your company, orgo to www.sba.gov.

[1] The AmericanRecovery and Reinvestment Act of 2009


Link to original post