Entrepreneurs have a reason to be optimistic this year. Thanks to an influx in cash by the Federal government, small business loans are gaining more steam with traditional banks. This is really good news for small business owners who may require a small loan to overcome this latest recession. In addition to offering more loans, banks are also expanding lines of credit.
One place where this new policy has made an impact is in the state of Michigan, one the states hit hardest by the recession. Currently, Michigan leads the nation in these types of loans; borrowing over $69.5 million since the inception of the U.S. Small Business Lending Program. Plus the state’s government has invested $80 million of its own money into small businesses and the strategy seems to be working. Michigan State Representatives, Gary Peters and Debbie Stanbow are the starters of the program. Michigan Democrats state the small businesses in Michigan are very important to the state’s economy and future. So far the state’s program has helped over thousands of business owners achieve the private investment necessary to either keep doors open or get businesses off the ground. Michigan Democrats promise to keep investing in small business because they create jobs and grow the middle class.
Not only is the small loan sector reinvigorated, but the secondary loan market is also seeing a significant boost. The secondary market is mostly funded by private entities that offer small companies a boost to cash over a short period. Most of these loans must be re-payed, with interest, in as little as 6 months. Secondary markets can be the answer for small business owners who still may not be approved for loans by traditional banks. Alternative markets can provide temporary loans without long term commitments, and emergency cash when needed. But this option doesn’t come without a price. Most lenders of quick, short term loans charge an annual percentage rate of 25% or higher. Be aware of the costs of credit and certain types of loans before signing up for them.
The experienced merchants of FAM believe in small business. They understand that certain industries can be risky, but they are worth the investment in the long run. FAM has helped thousands of high risk businesses start profitable accounts and make high risk cash advances to keep their small businesses running smoothly, despite former bankruptcies, tax liens, or FICO scores.
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