Small Business Loan Programs Salvaged

Small Business Loan Program Wins a Stay of Execution For 2009

Unbeknown to many, Uncle Sam’s been scheming about how to eliminate some small business loan programs. Makes sense I guess. At the mouth of a recession why not strangle the largest supplier of jobs in the U.S.?

Fortunately, Senator John Kerry’s Small Business & Entrepreneurship Committee was on it. They not only salvaged several loan programs, but they secured an extra $100 million to boot.

The 2009 SBA budget will allow for increased loan oversight (not a bad idea in these recessionary times), reduced fees and will support microloans, contracting assistance, Small Business Development Centers, Women’s Business Centers, veterans outreach programs, and technical assistance programs, and others.

“Small businesses create more than two-thirds of all new jobs, yet by refusing to fund important small business programs the Bush Administration has starved entrepreneurs of the resources they need to grow their firms,” said Kerry.
The White House sought to eliminate microloans and the Microloan Technical Assistance program from the budget. The Committee said the $31 million loaned through the program in 2007 helped more woman and minorities in small business than any other program.

A couple of new small business loan initiatives also received funding: New Markets Venture Capital, and New Markets Technical Assistance—each receiving $5 million. They are aimed at promoting businesses and job growth in low income areas.

Click here for more information about the 2009 small business loan program budget.

For more help on small business loans, angels and other private investors, venture capital, government loans and grants, preparing a business plan or financing application, and other money management advice, check out our all new, fully revised eBook, Finding Money—Secrets of a Former Banker.

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