Obama Small Lending Business A New Initiative

Written by ysdata on October 22, 2009 – 1:27 pm

Obama Small Lending Business A New Initiative

Small Business Lending Some of the biggest innovations and corporations in the world started as small businesses. For example — Hewlett-Packard started in a garage, Google began as a research project, and McDonald’s started with just one store. Over the past decade and a half, America’s small businesses have created 65 percent of all new jobs in the country. And more than half of all Americans working in the private sector are either employed by a small business or own one.

Small businesses are the engine of job growth in America. Small businesses fuel our prosperity. And that’s why they have to be at the forefront of our recovery. One problem for small businesses is that they have been the hardest hit by this current recession.

From the middle of 2007 through the end of 2008, small businesses lost 2.4 million jobs. And because banks shrunk from lending in the mist of the financial crisis, it’s been difficult for entrepreneurs to take out the loans they need to start a small business.

For those who already own an existing small business, it’s been difficult to finance inventories and make payroll, or expand if things are going well.

The Recovery Act is now focused on helping small businesses expand and create jobs. In it, you will find that the fees on SBA loans have been reduced or eliminated altogether. SBA loans are loans (lending programs) that give small businesses more money to reinvest in their own futures. SBA loans are typically guaranteed up to 90 percent by the federal government. These lending programs offered by the SBA gives local banks and credit unions the confidence they need to lend.

Within the last eight months, Recovery Act steps have made a real difference for small businesses across America. So far, the Recovery Act has supported over 33,000 loans to small businesses that have already helped save or create nearly tens of thousands of jobs — nearly $13 billion in new lending to small businesses.

More than 1.200 banks and credit unions that had stopped issuing SBA loans (lending money to small businesses) are lending again today. And more than $4.3 billion in federal contracts are now going to small businesses.

Within the Recovery Act is tax relief. Small businesses under the Recovery Act will receive over $5 billion in tax relief this year.

There is no question that the Recovery Act has given a boost to every American who works at a small business, or owns one, or aspires to … There is no question that the steps the Recovery Act has taken has improved the overall climate for small businesses across the country.

President Obama Announces New Small Business Lending Initiatives

http://www.youtube.com/watch?v=qLMTpvXCCdI

Small Business lending Overview