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Obamafunding Will You Get Your Share?

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On Monday, President Obama signed the Small Business Jobs Bill. The bill provides $42 billion in loan incentives and tax cuts for entrepreneurs and small businesses.Obamafunding

Specifically, the Bill does a few important things:

1. The Bill increases the government guarantee on the SBA’s 7(a) loans to 90% through December 31.

Some explanation for some of you who are new to raising funding:

The SBA is the United States Small Business Administration. The SBA doesn’t lend money to entrepreneurs. Rather, local banks give out the loans, but the SBA guarantees a certain percentage of the loan amounts (so if the entrepreneur defaults on the loan, the SBA pays the bank 80% to 85% of the loan amount). With the new program, the guarantee is being raised to 90% which makes lending less risky to the banks.

The SBA’s 7(a) Loan Program is its primary program “to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels.”

2. The Bill includes a new $30 billion lending fund that community banks can use to make loans to entrepreneurs and small businesses.

3. The Bill includes $12 billion in tax breaks for small businesses.

Overall, this is great news to entrepreneurs and small businesses who gain 1) more access to funding, 2) better funding terms, and 3) tax breaks.

This is also positive news for the US economy, as entrepreneurs and small business owners have historically created the majority of jobs and job growth in our country.

(Note: Want to tap into this new funding from the Small Business Jobs Bill? Growthink’s Step by Step Guide to Raising Capital From Banks and SBA Lenders will teach you how to quickly and easily get the right SBA and/or bank loan to fund your business.)


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JL Mealer says

This sounds all good and well Dave, however... First off, my company is 'that automaker business' that got in the way of the GM-GMAC bail-outs rounds one GWB and two BHO... With both presidents making clear statements for the conglomerate to use their own BKs and restructuring to destroy comeptition and maintain their own competiveness (which is partially why all news agencies and most big new websites run constant "ALLY BANK" ads with an agreement that the bad news (the truth) is never reported which would show their true colors. Hence the Fox News and the other main stream media refuses to discuss or share this issue of the small automaker (mine) being shut down by the huge GM Family. President Obama and his office for the most part refuse to acknowledge this issue and instead pass the complaint back and forth. Why would they fund a company that they have already stomped into the dirt and one that would give the bailed-out and loaned to GM Family legit competition? I would love to get a loan, but they have already given me their answer as to how they feel about me. Do you think the bank will look at if differently?
Posted at 1:08 pm
Drew B. says

Most bail-out money is a farce; it’s like the government’s policy of “no preselecting candidates for government jobs” and then writing the requirements (KSA) for the desired candidate. ARRA money earmarked for energy was my big experience with the Obama administration. The Act was signed into law in Feb’09 with the 4.5billion for Electricity Delivery and Energy Reliability to be given out starting 1OCT (FY10). Mid June09 there was still no guidance from DoE on what a application package should contain. WHY, because it was fixed (rigged) by the lobbyist who wrote the legislation in the first place (what; you thought the Pres or Senators write legislation while on the campaign trail for cash & votes?). They already had their conforming packets ready to turn in. Once the requirements were announced late in July relatively few legitimate non-insider organizations were able to compile the applications package by the Aug deadline. And exactly how was our effcient government going to select the winner and do adequate Due Diligence in such a short time? So YES, it was open to everyone but not everyone had a fighting chance … since it was rigged. As a result much of the money ended up in the hands of looser corporations that haven’t a clue about energy (altarock, raser technology, etc), more than half the money ended up in foreign corporations that make wind mills in Europe and Solar Panels in China and a Billion $ ended up with Elon Musk & Henrik Fisker who are better at selling pipe dreams than building affordable & environmentally sustainable cars. So although this sounds swell; the players getting rich off this have probably been identified long before the ink dried on the press release. Follow the trail of who wrote and sponsored this measure and then buy stock in those companies .. that’s the only way to get some of this cash (why did Buffett buy preferred stock in GoldmanSachs, MTbank & GE Cap as they sank .. for the bail out cash perhaps). Anyway, I work for the government & I don’t trust the government a single bit and will leave my secure GS job because I’ve lost faith in the system because of the things I’ve witnessed during my career.
Posted at 6:23 pm
doinit says

yes to duplicity. I've found , over the ears, that every one of the "fundings" has loop holes that allow the big corp.'s to pull off the majority. I don't DD for the info, the info to tell "the rest of the story" becomes publicly known when watching and comparing !!!!!!! the politicians always want lots of press concerning a big aid program so they get votes. most of us seldom benefit. like the ceta job training program started in 1967, name changed later but funding continues, 90% of that funding has gone to reserve law enforcement, and was swallowed up by the bureauacracy's in this country , government or big corp.'s , it's all wrong !!!!!!!!!!
Posted at 1:12 am
Dave says

Great Blog. You guys need a date at the top so I know when it was written.
Posted at 6:27 am
JL Mealer says

Oct 1, 2010 The DOE giving guidance to the proper format or form in what would be a request for funds has a lot to do with the government's desire for each candidate for funds to have their own lobbyist or lawyer (aka lobbyist) to negotiate the funding and although I hate to suggest it... they provide for the major kickbacks for the employee who either stamps the DENIED or FUNDED on each request document and who makes certain gov't loans and grants avoid paying out to any truly disruptive technology so as to keep the monopolies and the unions strong but the "little guy" or fledgling yet competitive business down. Seriously folks, Mealer v GM is pending federal court right now. If the court allows this to be heard, there is no way the conglomerate will allow this before a jury let alone a thinking judge... And the honorable judge who is looking at the court docs now appears to be one of the good-guys. Hell... Maybe I can get a book deal (?or mini series?) out of this until I take this vehicle and power source to any free trade non-communist country who will fund me to build them there. Don't worry, once strong enough, I will bring it back to the USA under new gov't leadership and institute the old Mealer Economic Plan I'd tried working on many moons ago.
Posted at 12:48 pm

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