Wow, this is a very interesting article being that I am constantly preaching the need to distance ourselves from business loans. My concern is only for those businesses that are not structured to manage loans nor are they prepared to manage the responsibility of a loan, its monthly payments and its interest payments. In other words, as a process engineer, I fear that the initial need for a business loan might be based on false data, false structures requiring financing and disorganized thinking via ill-defined processes. Although the SBA is a life saver in certain circumstances, I hope that those who are taking on loans are positve they can manage the responsibility of the loan and its interest payments.
Read this data.
By Catherine Clifford, staff reporterApril 1, 2010: 6:09 PM ET
NEW YORK (CNNMoney.com) — The lending market for Main Street remains pretty jammed up, but one segment of the credit landscape is recovering thanks to stimulus efforts.
The Small Business Administration’s flagship lending program backed twice as many loans in the past three months as it did in the year ago period.
In the SBA’s second fiscal quarter, which ended Wednesday, the government’s 7(a) lending program processed 16,558 loans. That is more than double the 8,205 loans it backed in the first three months of 2009, according to preliminary data the agency released Thursday.
In total, the SBA 7(a) program lent out $3.7 billion, more than double the $1.6 billion processed in the year-earlier quarter.
Read more at CNNMoney.com