Bank Bailout Money to be Channeled to Small Businesses? | SBDC UNF

Bank Bailout Money to be Channeled to Small Businesses?

The press services are abuzz with talk out of the White house that the government may use returned bank bailout money to make funds available to small businesses. The current lending environment is almost non existent as banks lick their wounds and resist full participation in the risky but guaranteed SBA ARC loan program. According to Reuters, ten large banks returned $68 billion in taxpayer funds last month, so the Treasury has about $127 billion in uncommitted TARP funds at its disposal. The current $336 million appropriation for the ARC loan program will not go very far and small businesses are going to be looking to Washington for additional capital to keep their business open and make it through the recovery.
There seems to be agreement among experts and law makers that the small business sector is going to have to lead us out of the bad economy. Another appropriation and easier access to capital for business owners will help make that happen.
Plans for another boost to small business lending is preliminary and no measures are likely to be taken before the Fall. Check out the following articles for more details.

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