Recent developments at the SBA show that the pace of lending picked up in the last quarter of 2009. Additionally, President Obama has suggested in his new budget that lending to small businesses is an excellent way to stimulate the economy. He has proposed a $50 billion dollar commitment for loan guarantees to small business.
We are advocates of resolving the credit clamp-down on small business lending practices. It appears that there are NO cash flow loans being provided to small businesses. The only loans being considered are hard asset backed loans and then they are only advancing at a rate that makes borrowing difficult. In some cases less than 40% of the appraised value.
Despite these issues there are some encouraging sign on the horizon that we will share over the next couples of posts and we continue to look for great opportunities for buyers and sellers of businesses.