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Cities and States Lend a Helping Hand to Small Businesses

Throughout the U.S. cities and states have stepped up to help the country’s struggling small businesses at crucial time for our nation’s economy. With the use of federal stimulus money and federal and state private dollars, states and cities are rolling out programs to help small businesses stay afloat.�
Here are some examples of the different [...]

Bank Failures Threaten Small-Business Lending

Since the beginning of 2008, 192 banks have failed, with 27 coming so far this year. Total lending by U.S. banks fell 7.4%, the steepest drop since 1942. I know this isn’t the most uplifting way to start a blog but unfortunately it is our reality.
On a positive note, the government is more than aware [...]

Small Business Lending Shows Signs of Rebounding

Some good news and signs of light at the end of the tunnel were recently released by the Small Business Administration earlier this month. The SBA’s flagship lending program backed 37% more loans in its latest quarter than it did a year ago.
In the last quarter of 2009, the SBA’s 7(a) lending program processed 12,393 [...]

TARP to Focus 2010 Efforts on Getting Loans to Small Businesses

Some good news for small businesses came out of Washington on Wednesday after Treasury Secretary Timothy Geithner informed Congressional leaders about the extension of the Troubled Asset Relief Program (TARP). The government’s $700 billion bailout program, which is due to expire at the end of the year, will remain in place until next October to assist troubled [...]

CIT files for 5th Largest U.S. Bankruptcy

CIT Group filed for the 5th largest bankruptcy by assets in U.S. history on Sunday as part of a reorganization plan that has the support of an overwhelming majority of debtholders.
In the bankruptcy filing, CIT said it had $71 billion in assets and $64.9 billion in liabilities. Only Lehman Brothers, Washington Mutual, Worldcom and General Motors [...]

Obama Pushes to Increase the Flow of Credit to Small Businesses

After several months of criticism that his administration has done too little to help small businesses weather the recession, President Obama recently unveiled initiatives to increase the flow of credit to small businesses.�
Some of these initiatives include:

Allowing smaller community banks to borrow at lower rates
Raising loan caps on SBA programs

With these initiatives in place, it will [...]

Credit for Small Businesses Remains Tight as the Country Tentatively Rises from the Recession

Many business owners are left scratching their heads when their request to secure bank loans are denied, despite their outstanding credit history, increased sales year after year and limited debt.
At a time when small and mid-size business growth is imperative for the overall economic growth, banks are scared to death of extending capital to businesses that in [...]

A Dismal Year for SBA Loans Ends on an Optimistic Note

After a tumultuous year for industries across the board I think it’s fair to say people are sick of hearing the statistics comparing 2009 to the booming times which peaked in 2007. However, we are slowly starting to see a slight break in the clouds that have been looming overhead.
Despite record low SBA loan approvals [...]

CIT Nears a Restructuring Plan

The CIT Group, who nearly went under earlier this year due to the inability to finance its operations through short-term debt markets, is in talks with its creditors over a restructuring plan that would significantly reduce its debt.�
According to people briefed on ongoing talks regarding CIT’s future, CIT would cut its debt by 30% through exchange offers [...]

SBA to Ease Limits on Loans for Buyouts

The SBA, after enduring a backlash from lenders and business appraisers, plans to modify a restriction it had placed on loans used to finance acquisitions of small companies. This modification is set too transpire on October 1st.�
For more information regarding the SBA’s plans to raise the cap on its guarantee of “goodwill” financing.