Obama’s Changes To The Small Business Administration
SBA or Small Business Administration is an independent agency of the US government that helps in protecting the interests of the small business organizations by assisting them in securing loans, forming business plan, business counseling so that they can thrive among competition which in the long run is beneficial to the economy of the country. This program provides small loans of between $5,000 to $50,000 to both small start-up and existing businesses, it can be used for a broad range of business purposes, and those receiving such loans must participate in a technical assistance program administered by the nonprofit agency providing the loan.
The Small Business Administration guarantees up to $1 million of loan principal. Hence, the lending requirements for SBA loans can depend largely on the rules, regulations and policies of specific banks. They are given full power in the decision making process and can grant SBA loans without consulting the SBA first.
Refocus the organization on the most important business units, customer segments and geographies in which the company has a repeatable formula for growth and a ‘right to win’. Instead of opting for high interest loans, people who have a sizable amount of investments in the form of securities like stocks and bonds, IRAs, CDs and 401(k) plans, can liquidate them to fund their residential property investment.
This may include using some of your own savings, using some income from your 401(k) or IRA accounts, taking out a personal loan, using credit cards, or working with a potential investor that can provide you with the financing that you need in order to launch a business.
There are several types of Small Business Administration lenders and the difference is typically based upon the volume of SBA loans that the lender produces each year. There are bank loans and merchant service providers. When du Rugy began looking at the long-held notion among entrepreneurs and policymakers that small businesses were the “fountainhead of job creation” and an important economic driver, she came to a radically different conclusion.