Posted on 07/03/2009 6:12:20 PM PDT by FromLori
In its first full quarter since the Recovery Act kicked in, the SBA still backed 30% fewer small business loans than it did a year ago.
ROAD TO RESCUE Small business lending falls sharply
SOS: Send loans now
NEW YORK (CNNMoney.com) -- Despite emergency stimulus measures, small business lending continues to fall. In the just-ended quarter, the Small Business Administration's flagship program backed 30% fewer loans than it did a year ago, and 55% fewer loans than it did in 2007, before the recession set in.
The numbers bear out the grim reports from business owners who say that credit is dangerously scarce for small firms. The SBA's 7(a) program approved 11,580 loans in the quarter ended June 30, valued at $2.5 billion. That's down from 16,490 loans, worth $3.4 billion, in the same quarter last year.
For the full year to date, the situation is even darker. In the first nine months of its 2009 fiscal year, the SBA has approved roughly half as many loans as it did last year.
With sales slow, many business owners are looking for financing to help them weather the recession, but banks have clamped down on making the risky loans. Additional incentives from the SBA, authorized as part of February's Recovery Act, have helped spur some increased lending but haven't sparked a complete rebound.
Still, SBA officials point to post-stimulus lending trends as a sign that the situation is at least better than it would have otherwise been. Comparing the months before and after the February 17 stimulus signing, the SBA reports a 24% jump in the number of 7(a) loans it has backed.
(Excerpt) Read more at money.cnn.com ...
There was no commercial paper for the regular operations of businesses.
Paulson was Iago to Bush.
Despite emergency stimulus measures, small business lending continues to fall.
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That is because no one wants ANYTHING to do with socialism and its ugly consequences. No confidence. People are scared and they do not want to lend money or borrow it. And for good reasons.
Money is being diverted to the public sector by Obama policies.
I am a self employed investment and insurance guy.
I often go into debt, on an advertising campaign, with confidence that I can pay off the debt in short order, when the sales come in.
I am not so confident.
So, I do not borrow much.
So, the advertisers do without my money.
Who can predict what will happen? Why should I invest in a future that I can not predict within a reasonable margin of error?
anyone that thinks obama cares about small business
has not been paying attention.
It was my understanding that SBA loans were primarily focused on small businesses that hired employees, rather than providing funds for sole-propreitor businesses. So, this is a focused part of the market, not the entire small business market.
Yes firms started delaying construction projects where my husband works (Commercial Const.) when they thought he would get in and then cancelled them when he did. We have never seen things this bad and he has worked there for a little over 36 years now.
Diverted is a very kind way of saying "stolen from our children". Because that's what's happening. Money that doesn't yet exist - future wealth - is being stolen and redistributed to a bunch of low-life, lazy deadbeats in exchange for their vote.
Careful: That would make Obama Desdemona!
Government “stimulus,” cap-and-trade, etc... is all money for big business.
You can really only stimulate small-business by lowering income and capital gains taxes.
Obama to Fannie, Freddie, Acorn, AFL-CIO: Wallet is open.
Obama to small business: Drop Dead.
Which is part of the reason loans are down. Who needs to expand? Plenty of un-used capacity. New loans would presumably be for survival, which makes them risky.
The frippery slope.
parsy, who questions where the “demand” will come from
A buddy of mine works for a large communications and wireless company and he said that they had an emergency round of lay-offs due to a spike in small business failure.
They didn’t lose the accounts to competitors. He said they disappeared.
The folks that got canned were all experienced men and pigmentally challenged. I guess that there will be no filing of grievances for discrimination.
The next round is coming up in November.
I’m looking for a job.
I noticed a few community organizer type gigs in the paper.
My guess is that I don’t qualify.
Yes it is. The Reagan economic recovery started with small business and technology.
2. Many small businesses are discretionary spending, like restaurants.
3. Obama's health care costs on small business is looming, but unknown.
4. Tax increases are looming, but unknowm yet.
There is tremendous over capacity anyway, so there is no need to invest or expand yet.
Obama’s fault.
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