Small Business Could Lose 2M Jobs By 2010

The impact of the recession could cost America’s small businesses as many as two million jobs by 2010, according to analysis conducted by Joel Prakken, chairman of Macroeconomic Advisors. January’s employment figures showed a 12th straight monthly decline in small business employment. Overall in January, small businesses shed 175,000 of the 600,000 jobs lost in that month.

Since February 2008, small businesses have cut about one million jobs, and Prakken believes the number could double throughout 2009. Prakken predicts a tough road ahead, even after the stimulus plan is enacted. In the end, he expects small business hiring to recover first, but doesn’t see that happening much before the second half of 2009 at the earliest.

According to Prakken, the current decline outpaces the longest recent small-business decline, which lasted for ten months between August 2001 and May 2002, and resulted in a net loss of more than 380,000 jobs.

For small businesses that are trying to weather the rough economy, access to capital can be one of the biggest challenges. Banks have tightened lending restrictions, cut lines of credit and are even refusing to write small business loans that are backed by the US government. Without having access to capital, small businesses can’t expand, withstand delays in getting receivables paid by customers or handle unexpected expenses.

Rapid Capital Funding can help. With a merchant cash advance from Rapid Capital Funding, small businesses can take advantage of future sales to fund current operations. Merchant cash advances aren’t like loans – there’s no monthly payment to make. The advance is tied to future credit card sales, and is paid back each time a new credit card transaction is processed. Rapid Capital Funding can supply up to 1.5 times your business’ normal monthly credit card receipts in the form of a cash advance.

About 95 percent of merchants that apply for a business cash advance are approved, and even those with less-than-perfect credit can still qualify for an advance. If your business is registered in the US, accepts Visa or MasterCard and has at least $2,500 in credit card sales each month, you can get a merchant cash advance. Contact Rapid Capital Funding today!

Source: Los Angeles Times

Photo Credit: Abdulhamid Fadhly

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