Economic Recovery: Are Small Businesses Being Left Behind?

On February 17, President Obama signed the American Recovery and Reinvestment Act, a huge piece of legislation that is the boost that growing businesses desperately need.  The Act integrates the Small Business Administration (SBA) and its programs, incorporating the SBA into the solution instead of sweeping the administration under the rug.  More specifically, $730 will be provided to the SBA to and, taken directly from the SBA official press release, it will be distributed as follows:

$375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90 percent for certain loans

$255 million for new loan program to help small businesses meet existing debt payments

$30 million for expanding SBA’s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders

$20 million for technology systems to streamline SBA’s lending and oversight processes

$15 million for expanding SBA’s Surety Bond Guarantee program

$25 million for staffing up to meet demands for new programs

$10 million for the Office of Inspector General

Other initiatives planned to give small businesses a hand include: equipment expensing, hiring incentives, capital gains, and microloans.  The entire package has one simple goal: create jobs to stimulate the economy. In addition, Karen Gordon Mills has been confirmed as the new SBA Business Administrator. (To find out more about what this appointment means for small business, refer “Remaking America: Karen Gordon Mills, New SBA Administrator,” a previous Perks Consulting blog.)

So, what’s the bottom line for small business? Change is just around the corner and help is, finally, on its way.