Meet Small Business Development Centers

Here's some good news in the field of small business financing. Dawn Rivers Baker pointed in her article about Small Business Development Centers which offers free training.

That sort of training is available for free through SBA entrepreneurial development programs like the Small Business Development Centers (SBDC).

The SBDC program is the grandfather of the SBA’s entrepreneurial development programs, established in 1980. It is an outstandingly successful program that typically returns a minimum of $2 to the federal treasury for ever $1 spent on it, and saves or creates countless small business jobs on an annual basis.

The SBDC network is affiliated with colleges and universities or with state economic development departments around the country. There are SBDC state affiliates associated with such august institutions as Howard University in Washington, D.C. and the University of Pennsylvania’s prestigious Wharton School of Business in Philadelphia.

You can check out this small business financing news here.

Obama's plan of backing up small business lending

Jane Saseen wrote an article in Business Week about Obama's plan of backing up small business lending.

In a move that took even some of his allies by surprise with the timing, President Barack Obama on Mar. 16 unveiled a package of measures aimed at boosting lending to small business by freeing up the frozen markets for credit that serve the nation's entrepreneurs.

With Treasury Secretary Timothy Geithner by his side, Obama told roughly 200 small businesses representatives gathered in the East Room of the White House that he would commit $15 billion from the Troubled Asset Relief Program (TARP) so that the government can purchase loans backed by the Small Business Administration from the banks that have originated them. The moves come on top of earlier Administration efforts to ease the strains on small business lending. As part of the stimulus package, the government agreed to increase the guarantee it provides to banks on SBA-backed loans from the current 75% to 90%, as well as temporarily reducing some fees linked to Small Business Adminstration loans.

Now the question is: Can Obama successfully do this? Well, I really hope he can. Read more about this news here: Can Obama Jolt Small Business Lending?

Yes. Why not lower the taxes?

I found a commentary post written by Andreea Bourgeois. And I agree with what Andreea is trying to point out.

There is never a bad time to decrease taxes, but now is the best time. CFIB survey data indicates that businesses reinvest tax savings into their business to increase productivity - either by acquiring new equipment or by paying down debt, which in turn reduces interest fees and frees up money for the business. Potential tax savings would be directly reinvested in employees in the form of increased wages, raising staffing levels or providing additional training.

Business owners do not demand miracles. They expect the finance minister to keep his promise of making New Brunswick more competitive and a better place to live and work. The majority of entrepreneurs do not want handouts, grants or subsidies from government.

Small business owners want a real helping hand: lower taxes so they can put that extra dollar to work in their firm.

Isn't she absolutely right? Read her entire commentary post -- Small business owners want tax cuts - now, and share your insights under the comments section.

Another Billion Dollar Credit Crunch Buster

The good news does not stop from my yesterday's post because today there's a -- A $200 Billion Credit-Crunch Buster?-- news. Check out a few insights below.

The federal government on Mar. 3 provided some long-awaited answers on how it plans to unlock consumer and small business credit markets, which have been frozen more solid than an icy tundra.

The $200 billion joint Federal Reserve Board and U.S. Treasury program, known as the Term Asset-Backed Securities Loan Facility, or TALF, is intended to get money flowing for small employers, student-loan providers, credit-card issuers, and auto lenders.

Isn't it good news? Check out more of this business financing news from Business Week -- A $200 Billion Credit-Crunch Buster?

Good News in Small Business Financing

We already knew that we are in a recession but it doesn't mean we have to dwell on the bad things happening these days. Today, it's time to spread some good news for small businesses out there! I found this from Business Week and it's worth to be shared.

Some welcome news for small businesses struggling in the credit crunch: A new government program to help small businesses get loans appears to be on the way.

In a closed door meeting last night with House Democrats, President Obama and Treasury Secretary Timothy Geithner announced that they will unveil a new program next week “that will provide financing, liquidity and guarantees to open up small-business lending,” according to a WSJ article today. This program will be in addition to the recently unveiled Term Asset-Backed Securities Loan Facility (“TALF”) program and bolstered Small Business Administration funding and guarantee limits in the stimulus package.

Read more about this news here --New Small-Business Lending Program Coming Soon!

Four Borrow Sources

Where the Money Is? According from the article at US News written by Asheesh Advani -- Raising money in a recession is beyond difficult, but getting started now is a great idea and she pointed out four possible sources that we can find for business financing.

1. Borrow from yourself
2. Borrow from family and friends
3. Borrow from people who are patient
4. Borrow online

Asheesh also have a parting message to her article -- I"'ll join the chorus of experts who say starting a business during a recession is a good idea, as long as you recognize it'll take extra effort to raise money in the months ahead." Read more about the details of this article here -- US News Financing Sources