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Loan Cap Expansion Gives More Money to Small Businesses

Last month a bill was introduced to raise the loan cap. It was one of the few bills introduced into Congress with bi-partisan support. The loan cap increased the cap from $18.75 billion to $23.5 billion. The raise is very important to small businesses that are trying to recover from the recession, or for new entrepreneurs who want to start their own businesses.

Until last month, many small business owners were getting desperate. Daniel Ramirez is the owner of 4 Papa John’s franchises in Maryland and Delaware. He recalls that opening his first store was a struggle, as he worked as an owner, manager, and worker for 4 months because he couldn’t afford to pay labor and keep the store open. Ramirez was just one of many small business owners feeling the pinch as resources in the loan cap dried up. To enable more entrepreneurs to open businesses, Senators David Vitter and Jeanne Shaheen requested more money from Congress.

Senator Chris Coons was anxious to push the bill through. As a member of SBA, Coons believed that the bill should have bipartisan support because small businesses are good for the middle class and the economy in general. And history has shown that more lending to small businesses will lead to job growth. Since the passing of the bill, the state of Delaware is promised to get $93 million; that’s great news for entrepreneurs like Ramirez.  Ramirez was one of many entrepreneurs to turn to the Small Business Administration (SBA) which assists struggling business ventures with loans. The program is called the 7a loan program. The program helped Ramirez start 3 more Papa John’s franchises. He hopes the government continues to invest in small businesses. His real dream is to open his own sit down restaurant one day.

Since the last recession, many good business owners have found themselves with less than stellar credit and do not qualify for traditional small business loans from the SBA. If this is you, there are other options. The experienced merchants of FAM will help small business owners get a cash advance with bad credit. They understand that certain industries have their ups and downs, and have helped thousands of small businesses stay afloat or open. Contact First American Merchant (FAM) for alternative business financing and working capital.

Contact us to start your application today