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Selasa, 14 April 2009

Small Business Health Insurance Plans

Small Business Loan News: Stimulus Bill--can We Now Get Loans In The New Secondary Market?

This original article was written by Sue Malone

The word is out that the new stimulus bill (American Recovery and Reinvestment Act of 2009) has a special provision creating a Federal government secondary market for SBA guaranteed loans. We begin by looking at a program that is already in existence and one in which SBA lenders are actually making loans: the Community Express Loan Program.

Most of us have heard about SBA loans. With the exception of disaster loans and the Microloan Program (for underserved communities), the Federal government through the U.S. Small Business Administration (SBA) does not actually loan the money. The SBA also has excellent smaller loans which are truly "lean and mean".

Typically, the private lender makes a loan for 50% of the cost under a first mortgage (not guaranteed by the SBA) with 40% loaned by the CDC in a second position (100% SBA guarantee). The SBA now has the authority to set up a SBA Secondary Market Guarantee Authority and give guarantees for pools of 504 loans to be sold to third party investors on the secondary market. The SBA loan guarantees not more than $3 billion of such pooled mortgages.

ESTABLISHMENT OF SBA SECONDARY MARKET GUARANTEE AUTHORITY. Unfortunately, for the secondary market on 504 loans, the SBA will charge a fee. What about the secondary market on other loans? The typical everyday medium to large SBA loan is under the workhorse 7(a) program. The stimulus bill does not set up a new secondary market for 7(a) loans. But it does allow direct government loans (not made by private banks) to broker-dealers in the secondary market purchasing 7(a) loans. So if you are in the business of buying pooled 7 (a) loans and need a loan to do so, taxpayers monies will be used for this purpose. The idea is to stimulate this secondary market again so banks will make further loans.

Studies show the average small businesses loan is $10,000. None of the stimulus programs helps the secondary market on the smaller loans and so few lenders are loaning.

Credit Crunch Affecting Small Business Lending Leads Small Business Failure

This original article was written by Melissa Peterman

According to statistics, more than half of America is employed by small business owners and these owners rely on credit. Banks are changing their standards on small business lending , making it hard and at times impossible for small businesses to get financing.

A Majority of banks are changing their small business lending standards
Most small businesses agree that even in the last 6 months they have felt the effects of the credit crisis. The problem is the domino effect of this crisis: since banks don’t have money to lend, small businesses cannot borrow money to expand, pay bills or payroll- which then affects employees of small businesses.

Rescuing Starts at the Top No Immediate Assistance for Small Businesses
Since the government is concerned with helping the big players first, small businesses can’t get the immediate help they need. The government can’t realistically help out every small business in the ways they are assisting big businesses right away. Time is money of course and small businesses lose more than larger businesses every day that they can’t get financial assistance.

Without Small Business Lending, Small Businesses Make Sacrifices
because there isn’t the normal financial cushion helping businesses have a little wiggle room, all expenses must be taken into consideration.

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