SHARE:
SBA Help Not Getting Through to Businesses
Claudia Menezes said there's a barrier between the government aid allotted for small businesses and companies like hers, Pegasus Transportation, which runs tours for international travelers. And she isn't alone in that opinion.
"We can't get a loan out of anybody to help these people," said Rich Jaeckle, chairman of the Orlando chapter of Score, a business-counseling group. Entrepreneurs approach the nonprofit organization for help, he said, but it can't provide it. "They're good ideas and they can't go anywhere."
The American Recovery and Reinvestment Act of 2009, also known as the stimulus bill, included several provisions aimed at loosening up lending for small businesses. The law includes money to temporarily eliminate fees on loans backed by the U.S. Small Business Administration, as well as a provision to that allows the SBA to guarantee as much as 90 percent of a small-business loan.
At a meeting Wednesday between area lenders and the local small-business community, banks said the new programs have issues that prevent them from handing out loans.
"There's really a gulf between what politicians and the public want to see happen ... versus what we know is occurring," said Chris Hurn, chief executive officer of Mercantile Capital Corp. in Altamonte Springs. "We need to see some easing from the regulators if, in fact, we're going to properly deploy some of these programs."
Small-business lending has plummeted in recent months, as lenders have become more selective. Some small-business experts have suggested that those banks with money to lend are cherry-picking only the best loan applicants, said Ralph Ross, the SBA's deputy district director for North Florida, which includes the Orlando area.
- Free Downloads
