Beginning in early the federal government acted quickly to unfreeze credit markets with programs ranging from loan guarantees to capital infusions and regulatory changes. A number of these were extremely effective and also efficient in their use of taxpayer dollars but most were not meant to be permanent. “GUARANTEES HAVE PROVEN TO BE A VERY COST EFFICIENT GOVERNMENT TOOL WHEN IT COMES TO SMALL BUSINESS CREDIT” Currently as described in the HBS working paper.
The State of Small Business Lending gaps persist in certain areas of the small business market and regulatory overhang continues to create pressures on small business credit. Government Steps To Loosen Credit Three landmark pieces of legislation passed between and were aimed at first responding to the immediate impact of the financial crisis on small business and second driving Chinese Overseas America Number Data economic recovery in the years following. Together the three the American Recovery and Reinvestment Act of Recovery Act the Small Business Jobs Act of and the Jumpstart Our Business Startups Act of JOBS Act leveraged effective federal programs that already existed while also taking action in some new areas.
With the Recovery Act the federal government significantly expanded its role as a guarantor of small business capital particularly through the Small Business Administration SBA which runs a billion loan guarantee program that operates as a public private partnership with about banks nationwide. In early loan volume including SBA loans had dropped dramatically as banks were reluctant to act even with SBA s existing percent guarantee. lender and borrower fees and temporarily raised the guarantee on its largest loan program to percent. The response was immediate.
發表於 2024-3-12 17:21:40
