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SBA Launches Micro Loan Program Aimed at Quickly Getting Credit to Small Businesses
Published on Dec 20, 2010
Read our article, 'SBA Launches Micro Loan Program Aimed at Quickly Getting Credit to Small Businesses' at 'Time to Start Up,' the small business blog by BizFilings.
The U.S. Small Business Administration has announced plans for a new lending initiative aimed at quickly providing small businesses with micro loans in response to recent reports that small firms are not receiving adequate credit.
According to the SBA, the loans range up to $250,000 and can be approved in a matter of minutes or up to 10 days through an application that is only two pages long. Analysts hope the program will aid cash-strapped entrepreneurs in forming a company.
"Many entrepreneurs and small business owners across the country have enormous potential to drive economic growth and create good-paying jobs in their local communities, but too often they face barriers in fulfilling that potential," said Catherine Hughes, chairperson of the SBA's Advisory Council on Underserved Communities.
The lending initiative is largely in response to an October report by the New York Federal Reserve, which found that three-quarters of small businesses that applied for loans in the first half of 2010 received little or none of the credit they requested.
However, a report released this week by the National Federation of Independent Business declared that 91 percent of surveyed small businesses' credit needs were currently met, suggesting to many that the actual state of small business credit is difficult to determine.