Geithner Says Small Business Loans On The Way

Treasury Secretary Timothy Geithner says that the Treasury will have a plan together, perhaps as early as next week, to support new small business loans. He did not provide any details, but says that small business loans are one part of an overall financial stability plan, parts of which he introduced on February 10.

Geithner says that the Federal Reserve has committed up to one trillion dollars in lending plans designed to support small businesses. Two issues the plan is expected to address are banks’ continued unwillingness to lend money, and their inability to sell loans on the secondary credit markets. The small business plan is also expected to help promote student loans, car loans and commercial mortgages.

Geithner’s plan is also expected to increase government guarantees on Small Business Administration loans. SBA loan volumes have dropped off sharply in the past year, as banks become more risk-averse. SBA loans had been guaranteed at 85%, and new plans will push that guarantee to 95%.

Geithner’s plans may run afoul of a growing number of legislators in Congress who are upset by the amount of regulatory oversight given to the bailout funds to date. Geithner reiterated his position that the economy will get worse before it gets better, and that he does not see a rebound until late 2009 or early 2010.

The ability to get cash is critical for small businesses, and banks just aren’t making small business loans right now. Applicants can wait weeks or months before being turned down, or being offered loans with very high interest rates.

If you need cash for your business, consider a merchant cash advance from Rapid Capital Funding instead of a bank loan. Our process for getting cash into your hands is streamlined. In many cases, we can process your application and put cash in your account in less than 72 hours. For certain businesses that have high credit card transaction volumes, special financing plans are available. And no, you don’t need perfect credit to get a merchant cash advance.

If your business is based in the US, accepts Visa or MasterCard and generates credit and debit receipts of at least $2,500 per month, you more than likely qualify for a merchant cash advance. Ninety-five percent of our applicants do. Give us a call today and let us show you how we can help your business get the cash it needs fast!

Photo Credit: Tom Goskar

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