Dallas Small Business Examiner Ivy Carter
$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.
