Money for the grabbing
PF Digital Dispatch
Many small businesses who have been hit hard by the Obama Administration policies in the past 18 months can smile a little easier if they were on a waiting list to get a Small Business Administration loan.
H.R. 5297, better known as the Small Business Jobs and Credit Act of 2010, was signed into law by President Obama on Sept. 27 and is expected to provide small businesses with tax breaks and improved access to credit, as well as increased loan limits and decreased or waived fees being applied to the SBA 7(a) and 504 loan programs.
An executive with Huntington Bank, the fifth-largest SBA lender in the country, applauded the new bill.
"For one of our customers who is seeking a nearly $2 million loan, the fee waivers will result in a savings of more than $50,000," says Mary Navarro. "The fee waivers offer a huge advantage for businesses and will only be available through the end of 2010."
The increased access to credit is expected to allow small businesses to develop and expand their operations through the acquisition of equipment or real estate, which could result in new jobs.
So does that mean owners in the finishing industry are ready to buy new paint and powder lines, or add new tanks? That's tough to say, especially with the economy not back at full strength and talk of a double-dip recession still possible.
But the bank exec says don't wait around scratching your head too long.
"Real estate prices are low, interest rates are low, and fees are being waived. Especially with the higher loan limits available, this could be a great time for a business to purchase a building," says Navarro.