A persuasive salesman would tell you that they could sell you a extraordinary list of funders who gives "free money" to begin a business. I'm telling you, don't believe them. Despite the fact that there are some programs which helps women who wishes to put up a business for themselves. These loans are usually for education, loans for development or tax credits rather than grants. Funders of grants don't offer money for start-up profit business. The government would not do it; even the IRS won't permit private foundations to do it. So could you have a grant?
The real question is, does this bill really help small business get the working capital they need? In theory, the bill nurtures small business lending via the Small Business Administration guaranteed loan programs. Normally, these programs guarantee anywhere from 50-70% of a small business loan against default for the lending institution that makes the loan. The new bill raises this guarantee to 90% in some cases, in theory lowering the risk of default and putting community banks in a better position to take on these loans.
Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.Interestingly, U.S. taxpayers benefit from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.
Making it easier to use small business loan programs and making it less risky for banks to lend is one thing, but the government cannot force banks to make loans to business. Added to this fact is that banks are more fearful of ever over tight regulation that has been imposed since the financial crisis began, worried that even a small uptick in defaults will result in federal regulators sitting in their offices for months on end, sifting through every detail of operations in effort to find wrongdoing or bad management.
Grow think Business Plans have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GrowthinkSmall Business Grants Loanshas become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know.
The real question is, does this bill really help small business get the working capital they need? In theory, the bill nurtures small business lending via the Small Business Administration guaranteed loan programs. Normally, these programs guarantee anywhere from 50-70% of a small business loan against default for the lending institution that makes the loan. The new bill raises this guarantee to 90% in some cases, in theory lowering the risk of default and putting community banks in a better position to take on these loans.
Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.Interestingly, U.S. taxpayers benefit from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.
Making it easier to use small business loan programs and making it less risky for banks to lend is one thing, but the government cannot force banks to make loans to business. Added to this fact is that banks are more fearful of ever over tight regulation that has been imposed since the financial crisis began, worried that even a small uptick in defaults will result in federal regulators sitting in their offices for months on end, sifting through every detail of operations in effort to find wrongdoing or bad management.
Grow think Business Plans have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GrowthinkSmall Business Grants Loanshas become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know.
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