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Small Business Help On The Way

By Justin Gardner | Related entries in Business, Economy, Money

While everybody is focused on the ups and downs of the top 30 companies, Obama and Geithner have plans to free up money for the little guys.

From AP:

Obama and Treasury Secretary Timothy Geithner on Monday planned to announce a broad package that includes reduced small-business lending fees and an increase on the guarantee to some Small Business Administration loans. [...]

To that end, the government plans to take aggressive steps to boost bank liquidity with more than $10 billion aimed at unfreezing the secondary credit market, according to officials briefed on the plan who demanded anonymity to avoid pre-empting the president’s announcement. [...]

“We know that small businesses are the engine of growth in the economy, and we absolutely want to do things to help them,” Romer said Sunday morning, speaking broadly on the outline of the plan. “There are already a lot of things to help them in the recovery package, and some of what will be coming out are the things that were in the recovery package: increasing the SBA loan guarantees, lowering fees.”

All good steps, but is lending really the problem? Or is it consumer spending?

Obviously there are opportunities in any economic situation, but if unemployment keeps going up I wonder if it’s smart to open up a business right now. Everybody seems to be tightening their purse strings, so trying out a new, unproven small business seems to me to be less and less likely.

Still, it’s likely that this will be cheap money to borrow, so perhaps this really is a good time to put your small business plans in motion.

More as it develops…


This entry was posted on Monday, March 16th, 2009 and is filed under Business, Economy, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Small Business Help On The Way”

  1. ShortWoman Says:
    March 16th, 2009 at 11:58 am

    Talk about SBA loans is a big red herring! What is going to guaranty those loans? Home equity! What does nobody have anymore? Home equity!

    Unless the SBA goes into the unsecured loan business, this initiative might as well be written with fairy dust on stretched unicorn hides.

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