Recently I was in Washington D.C. for our annual pilgrimage to Congress and the SBA to ask for assistance in helping small businesses access the capital they need to grow and thrive. Most of the special programs that offered assistance for small businesses during the Great Recession have expired. Furthermore credit is not yet flowing to many small businesses due to regulatory pressure on lenders, declining or stagnant sales trends during the recession and the lack of collateral due to declining property values.
So, we are fighting to bring some of those programs back because the problems they were designed to address have not gone away! A great example is the Debt Refinance Program offered under the SBA-504 loan banner. This program allowed small businesses to restructure their higher cost debt and get access to working capital needed to ramp up their business, hire more people and invest in more equipment and inventory. The program ended in September 2012 with hundreds of small businesses left in line.
This is a zero cost program and yet we are still having difficulty garnering support since there is an overall distrust of any government program, even one that works! So, if you feel inclined, please let your elected officials know that they should support bringing back programs like the SBA-504 Debt Refinance Program that help small businesses access capital – especially if those programs cost the government nothing, result in new jobs within our economy and makes an investment in communities across the country.
Bring Back SBA-504 Refi!
The Kurt Quarterly blog posts are written by CDC Small Business Finance’s CEO, Kurt Chilcott.