No incentive can make a bad deal bankable. But President Obama’s stimulus measures are spurring some promising small businesses
to begin borrowing again, despite the recession.
SBA loan approvals above $100,000 for the Indianapolis area for November 2009
Local loans issued through the Small Business Administration’s popular 7(a) guarantee program plunged by an astonishing 64
percent for three of the city’s four largest banks during 2009, while overall lending in the program slipped 17 percent in
the metro area.
Small business lenders in Indianapolis are supporting a proposal announced by President Obama Wednesday that would increase
the size of government-backed loans.
Small Business Administration loan guarantees for the month of September 2009 for Indianapolis area
The economic stimulus package allocated $375 million to the U.S. Small
Business Administration so it could offer more generous terms to small-business borrowers.
There’s a smorgasbord available for small businesses in the federal stimulus package. The trick is figuring out how to get a plate. Plenty of local experts are serving up access to the buffet. And some entrepreneurs are digging in. But others consider the
stimulus warmed-over leftovers.
These businesses have received loans from financial institutions with
a guarantee
from the SBA. Not all funds are disbursed immediately. Furthermore, some approved loans are subsequently canceled.
