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Archive for the ‘credit’ Category

A recent article on Businessweek.com looks at the growing dilemma between banks and small businesses. Banks are reluctant to loan to small businesses and therefore small businesses are unable to find necessary capital to keep their businesses afloat. According to the article, borrowers were tapping sources of funding other than banks because either credit interest rates where too high or banks reduced or stopped lending to small businesses all together. Home equity loans are a popular source of funding for small businesses, but those are becoming scarce. According to the article, some factors small company owners should look into before deciding how much equity and or credit is right for their company is:

• The stage in which your business is in
• Industry norms for assets, inventory, and receivables
• Forms and Financing
• Your goals for your business
• When equity investors offer more than cash
• Size of monthly loan payments

How is your company finding capital? Read the article “Raising Capital: Equity vs. Debt” and let NSSEA know your thoughts!

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On October 24, 2009, President Barack Obama gave his weekly address that had a much needed focus on small business. In his address entitled “Working with Small Business to Drive Recovery,” Obama discussed the important role small business plays on the safe recovery of the economy. He mentioned that “small businesses have always been the engine of our economy, creating 65 percent of all new jobs over the last decade and a half and they must be at the forefront of our recovery.”

In that same week, Obama also met with small business owners to get their reactions to his proposals that involve: increasing caps for Small Business Administration (SBA) loans, giving community banks better access to tarp funding and giving small businesses affordable healthcare options. In a recent video clip, MSNBC.com mentions Obama’s recent meeting with small business owners and talks with SBA Administrator Karen Mills about her efforts to spearhead Obama’s lending proposals forward.

Let NSSEA know your thoughts!

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