The answers to this question may lie in lucky number 7.
Though no firm plan has been put forth, it is likely that the Small Business Administration’s 7(a) loan program would be a sound framework. The 7(a) loan program is the largest SBA loan program. It allows eligible small businesses access to capital at a lower rate of interest through government backing of loans from private lenders.
Historically, 7(a) loans have been used for a wide variety of purposes including: to purchase land or equipment, as long or short term working capital, to refinance existing debt, and to purchase another business.
The president’s proposal has opponents arguing that the re-paid TARP funds should go toward the deficit rather than small businesses though.
While decreasing the deficit is important, no one can argue that small businesses have done their part to keep people employed. They represent a large proportion of the jobs in the economy at any given time.
It’s really a no brainer that boosting loans to small business could help stem the tide of job loss in this country. The bigger questions are, “When will the money be available,” and “Will the banks actually lend the money?”
Eligibility for this program seems fairly straight forward. If you need more information on the SBA 7(a) loan program click here.
Tags: Assistance, Billion, business consultant, consulting los angeles, Eligible, human resources consulting, loan
