Monday, November 17, 2008

Finding Small Business Loans When Banks Won't Lend

Since a $700 billion bailout was approved and almost half of it has been dispersed among the banking industry, small business owners have yet to see any of this money in the form of loans. Despite warnings from congressional leaders, and even President Bush, to not horde cash and begin loaning again, the banks seem to be reluctant to do so.

In this story, titled 'Message to Obama: Send Loans Fast,' the author suggests President-elect Obama should do exactly what he promised to do during the campaign, which is: 'start cutting loan checks directly from the government.'

In October, Obama proposed temporarily suspending the fees the Small Business Administration charges for participation in its flagship loan-guarantee programs, which insure banks against losses on a portion of the money they lend to qualifying small businesses. But he also suggested making direct loans available through the SBA's Disaster Loan Program, which traditionally assists natural-disaster victims.

Well, until President-elect Obama takes office, it seems unlikely a President with less than 10 weeks left in office will be able to accomplish anything in a Democratic Congress. We've written before about Small Business Help, Resources, and Loans, but if you aren't having any luck and have been maxing out your credit cards, check out this article titled '5 Alternatives to Borrowing from Banks.'

MerchantCircle Community Relations

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