Goverment Stimulus Loans for Small Businesses

Not Reaching Their Intended Targets!

The government has reacted to the needs of the small business owner to have more capital available to them. They set aside the money for SBA loans and even guaranteed the regular commercial lenders that the funds will be repaid should the borrower default. Yet, the commercial lenders are still using their previous lending criteria as the decision making criteria in issuing those critical loans. The small businesses needing help can’t meet the usual lending criteria, as spare capital is exactly what they don’t have, and that they are looking to obtain!

Where do we go from here? How does a strapped small business access the guaranteed money that is set aside to help them? We need to get the word back to Congress. Our government needs to impress upon the lenders, the need of an updated model of lending criteria that fits the borrower’s tough cash flow conditions for having spare collateral of capital funds in this tough economy!

While we at Unitrans Worldwide, Inc. have been lucky to escape finding ourselves in this difficult “catch 22”, the worry is always there! Being a small business in this market for 30 years, our savvy financial management has helped secure us. Yet a huge part of our success as a small business in this tight economy has been the pure luck to have the timing between the cash flow of our vendors and our customers balance out each month.