Businesses Can Get Quick Loans from SBA through Stimulus Package

Help for small businesses

A new progam will help small businesses that are strapped for cash.

Thanks to one of the programs set up through the economic stimulus package, small businesses that are struggling will be able to get quick loans of up to $35,000 through the Small Business Association.

SBA prepares for quick loans

Congress has given the SBA only 15 days to issue guidelines for the brand new program, called the Business Stabilization Program.

The initiative is aimed at keeping more businesses from having to shut down. The economic stimulus package dedicates $255 million to quick, emergency loans for small businesses who are struggling with debt and bills.

A loan for a loan?

The new emergency loans will only be available to businesses that already have  business loans. In fact, the loans can only be used to pay down interest and principal on other loans.

Timing is everything

These quick loans are designed to work somewhat like payday loans. They will help stabilize businesses in the short term by paying for balances that are due now and buying them more time.

Businesses don’t have to start paying back their emergency loans for a year, so it will help with bills that are due in the next six months. The full loan won’t need to be paid back for five years. ... click here to read the rest of the article titled "Businesses Can Get Quick Loans from SBA through Stimulus Package"