Congress passed legislation this week that will boost lending incentives to small businesses by raising the government guarantees on small business loans.
The Small Business Lending Fund, which is part of the Small Business Jobs and Credit Act passed in September, will provide $30 billion to qualifying community banks to be used toward small business loans.
"Increasing access to capital is the key ingredient our small businesses need to start investing, growing and hiring again," Washington Senator and Democrat Maria Cantwell said. "I commend the Treasury Department for moving quickly to set up the Lending Fund to get job-producing lending capital flowing to the local banks and businesses who know how to put America back to work."
The lack of available credit for small businesses has been blamed as the chief obstacle to widespread economic recovery in recent months, as a lack of funding has prevented small companies - employers of nearly fifty percent of the U.S. private sector workforce - from hiring in larger numbers.
Entrepreneurs looking to incorporate in New York City have been further troubled by a recent report from the New York Federal Reserve which found that nearly three-quarters of U.S. small businesses failed to acquire their credit needs in the first half of 2010.
Tags : ca, financial management, ny, small business management
Posted: Dec 22nd, 2010