Thursday, August 02, 2007

Death of the SBA?!?!

Here is an interesting article that came to view today; many small business friendly banks feel that the SBA is NOT doing their job. The major concerns with the SBA are the doubling of loan-application fees, the toughening of loan requirements, and the halving of the SBA's budget.

The SBA supports their position with year 2006, when it backed record 100,000-plus loans under two primary small-business programs, worth $19.1 billion, also a record high. Outsiders point out that SBA bank-issued loans are responsible for about 8 percent to 10 percent of all external small-business loans.

When we recently hosted one of our Small Business Series seminars, we spoke with small business owners to get their thoughts on the SBA and if they are a viable solution for funding. Many attendees felt that they would use alternatives to the SBA due to the many hurdles one has to cross to get a SBA loan.

Now that small business friendly banks feel just as disgruntled as the small business owner, where is the SBA going to fit into the strategy of the business owner?

One critic even feels that the SBA is a relic of a different market from 30 years ago and wonders whether the SBA will even exist in 20 years.

Click here for more information on the SBA’s fall.

Keeping Your Business N Synergy

http://www.thebricogroup.com/

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