Small businesses that are having trouble obtaining loans may be eligible for assistance under a new program organized by a San Fernando Valley economic development group.
The loan program is designed to provide capital to existing businesses throughout Los Angeles to help offset the effects of the economic downturn and the credit crunch, said Roberto Barragan, president of the Valley Economic Development Center.
Read more of this LA Times article here.
While optimism among small U.S. businesses perked up slightly in September, owners saw little to celebrate as they planned to cut inventories and trim their workforce, a survey released on Tuesday showed.
The National Federation of Independent Business said its small business index for last month rose 0.2 point to 88.8 and was 7.8 points higher than the survey’s second-lowest reading reached in March.
Read more of this Reuters news article here.
Back in August, Federal Reserve officials suggested that the Great Recession was ending and the U.S. could expect “a gradual resumption of sustainable economic growth.” But even with stock market indexes and the bottom lines of large financial firms bouncing back, small businesses can expect a longer slog to economic health.
“Small business performance is a lagging indicator of recovery in the same way that unemployment is,” says Villanova University business school professor John Pearce II.
And it’s likely that small businesses will find this recovery even slower than previous ones. The downturn has especially hurt construction firms, retailers and food service providers, the vast majority of which employ fewer than 20 workers. To make matters worse, more than 110 banks have failed since early 2008, most of them community thrifts catering to the financial needs of local firms.
Here’s how a few savvy entrepreneurs are turning these headwinds to their advantage.
Read more of this CNNMoney article here.
We have all been told that a business plan is required for the business to fly. But how much attention do we really pay to it? And do all business owners really need one? You have customers, you have a niche, and you don’t need bank funding. You know what you know. Who will even read it? In this article, we will discuss why a business plan is quite often a necessary evil, and then we’ll go into the basic mechanics of a business plan.
Read more of the AmEx OPEN article here.
Even though there are signs that the economy may be starting to turn around, this has been and continues to be a stressful year for most business owners. I often think stress should be spelled $tre$$. I cannot think of many jobs that pay a good amount of money that don’t also offer a good amount of stress.
The interesting thing about entrepreneurship is that you can encounter stress either because you are busy and growing and making money — or because you are not. After many years of ups and downs, I have some tips on how to deal with stress in productive ways:
1. First, identify the real problem. Entrepreneurs often say they just need
Reed more of NY Times’ article here
Business brokers are complaining. Small business owners trying to sell their companies are being impeded. Prospective buyers are backing out of deals because they cannot get enough financing to close.
It is because of the “goodwill” rules promulgated by the U.S. Small Business Administration. The restrictions severely limit SBA’s loan size for purchasing some businesses.
In March, SBA decided to limit the loan amount to $250,000 for purchasing a business’s good will. Protests by industry groups caused SBA to reconsider.
Read more on heraldtribune.com site
A government effort to get badly needed cash into the hands of struggling small business owners is slowly gaining momentum, but entrepreneurs seeking the scarce loans are still in for a frustrating ride.
Dubbed “America’s Recovery Capital” (ARC) and created as part of the stimulus package, the program offers short-term, zero-interest loans to qualifying small businesses hurt by the recession. Since launching in early June, the ARC loan program has backed 2,715 loans totaling just over $88 million, with an average loan size of $32,425, according to the latest data from the Small Business Administration.
Read more here on CNNMoney.com
Small Business Administration implements a special, temporary loan program designed to help struggling American small businesses while reducing risks during these tough economic conditions.
If your small business is stressed meeting expenses during these economic times, the U.S. Small Business Administration has a new loan program designed just for you.
SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan.
ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first.
Read more here.
