Posted on 03/08/2009 6:42:52 PM PDT by 2ndDivisionVet
PITTSFIELD — The economic stimulus package that is designed to create jobs and transform the economy also contains several provisions to help small business owners, representatives of the U.S. Small Business Association said on Thursday.
(VIDEO AT LINK)
Robert Nelson, the state district director of the federal SBA, said the $787 billion American Recovery and Reinvestment Act that President Obama signed into law last week contains $730 million for his agency, and makes changes to the SBA's lending and investment programs so that they can reach small businesses that are in need of help.
Nelson appeared with local and regional SBA officials on Thursday morning at the Berkshire Chamber of Commerce to discuss the new initiatives. The majority of the chamber's 1,100 members are considered small businesses as defined by the SBA.
"I'm really excited about some of these changes that are coming down the pike," Nelson said. "I think there will be some dramatic and significant changes that will impact businesses in Massachusetts as well as the U.S."
Although the event was billed as a news conference, the majority of the attendees were members of the local business community. Patricia "Pam" Malumphy, the regional director of the state Office of Business Development, called the SBA's new programs "phenomenal." The funds will stabilize small businesses that are doing well, and help them through the current economic recession, she said.
Of the new changes, Nelson said he believed the most demand will be for the SBA's new business stabilization loan. Under this program the loan will be made by the bank, but contain a 100 percent guarantee from the SBA. These loans will contain proceeds up to $35,000 that small businesses can use to pay up to six months principle and interest on an existing small business loan. Payment on the interest doesn't begin for 12 months.
"Anyway you look at it I believe that it's a win-win for small businesses, the SBA, and our lending partners," Nelson said.
The SBA also plans to reduce or eliminate the fee it charges to obtain loans from the agency, which Nelson said should make these transactions more affordable to small businesses.
Waiving the fee should also encourage the granting of SBA loans to small business startups, which Nelson said have experienced a "dramatic falloff" in Massachusetts over the last five months, from 35 percent to 20 percent.
"So I'm hoping with a 90 percent guarantee it's going to get the banks more comfortable in giving loans to start-ups," he said.
The influx of economic stimulus funding will also allow small businesses to refinance loans through an SBA program that funds improvements related to real estate transactions, and provide increased funding in the agency's surety bond program that will allow small businesses to bid on expected infrastructure programs. An additional $30 million will be provided to expand the SBA's microloan program.
Less than ONE-TENTH of ONE PERCENT.
“Alms for the poor.”
“Ben Hur”
Not only less than 1%, but less than 0.1% goes to small businesses... the heartbeat of the American economy.
You miss the point this is not about stimulus, but about growing government employment and ownership. He is a lying Kenyan Commie.
It is about theft.
“The Stimulus to Nowhere”
That’s not gonna fix very many bridges over very many creeks so folks can get out to the boonies to find one of them small businesses. Isn’t that one of the gems that Biden claimed when he was looking for the internet number?
His election is tanking our business.
Are we going to get reparations?
Hey now!
Don’t go flicking boogers at 2ndDivisionVet!
Oh come on, get with the program. We have some very important stuff in this stimulus.
$1.7 million for pig odor research in Iowa, $2 million for the promotion of astronomy in Hawaii, $475,000 for a parking garage in Provo City, Utah, $300,000 to build a Montana World Trade Center and $150,000 for a rodeo museum in South Dakota.
Isn't this what we've all been waiting for?
I don't think I'll need the sarcasm tag.
P.S. This wasn't an election, it was a coup and Mr Obama is the biggest joke on America since Jimmy Carter.
Small businesses where jobs are created gets 1/10 of 1% of the "Stimulus Money". That is freaking stupid any way you look at it!
99.9% is up for grabs, not for creating jobs.
Taxpayers of the US, you have been had!
More Americans running their own (small) businesses would really revolutionize the world economy. It would be back to the old mom-and-pop type stores.
And for anyone who hasn’t heard yet, these “huge tax cuts” the Democrats are saying is in the stimulus are actually not.
The bulk of the “tax cuts” are actually the effect of postponing the Alternative Minimum Tax hitting tax payers it was never intended to hit.
In other words, the Democrats are calling putting off the huge tax increase waiting in the wings in the form of the AMT, a tax cut.
I figured it out on paper, but thought .001=1/10 of 1%????
could that be right? Maybe I used too many zeros. I can’t spell anymore maybe i can’t divide either.
sad to hear i’m right, but good to know I can still divide.
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