$30 billion dollars is expected to come from the White House as the Obama administration is planning to set aside these funds for a lending program for the economic recovery of small businesses. This plan is slated to expire in October 2010 and the Treasury Department has laid out plans on how the $30 billion will be spent which includes lending programs to support small businesses. Unfortunately, the plan itself has yet to be approved by the key members of Congress.
Though the $30 billion boost for small business owners is still in its initial planning phases, small business owners can expect to receive loans, small and large, for maintaining their business. What does the plan mean for small business owners in the North Texas area?
1. More loans from financial lenders. The financial lenders have tightened its lending practices with the downfall of the housing and auto markets. With the expected relief for small businesses lenders will have the financial backing of $6 billion to secure loans to small business owners.
2. Relaxed credit scoring. When the housing market tighten so did the credit scoring. Lenders refused to issue loans to consumers and small business owners but with the new financial boost lenders will have a 4 million loan goal to meet.
3. Ability to remain viable. More capital means more viability for small business owners; therefore the $30 billion will enable small business owners to update their marketing and business plans for future gains.
4. Pay employees. At some point in time small business owners were doubtful in their ability to pay their employees for time worked. Fortunately the new plan will enable small business owners to maintain a strong payroll system.
5. Increase inventory. Small business owners who have been operating with the minimal supplies will soon be able to maintain an inventory level for their clients.
As soon as the Obama administration and Congress reach a consensus on the details of the small business bailout initiative, small business owners will be able to perform the primary functions of their business and survive or revitalize their operation.
Comments
Obama is business-illiterate. The biggest impact on the economy is not the small business owners who go bankrupt. The biggest impacts are due to business owners and investors, both large and small, who
1) choose to close or sell their businesses because of the increasing taxes, regulations, threatened benefit mandates, and poor economic outlook due to government-induced credit crunch, and those who
2) choose to not expand, to lay off, and to contract their businesses for the same reasons as above, and those who
3) choose to never invest or open a business that they otherwise would have with a business-friendly government
Why disable the most able people...the entrepreneurs?...it doesn't work because they will contract their businesses to save themselves from the parasites, and the first victims are always the others who have less ability to run a business...the employees of the business owners...most of us.
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