My first thought when I saw that the a href=”http://www.sba.gov/recovery/” target=”_blank”>American Recovery and Reinvestment Act of 2009 (Recovery Act) included specific provisions for support for small business, including start-ups, was “This recession is serious”.
Because while I know that governments talk about how important, how valuable small business is, I do get the impression that it’s the mammoths of business that get most of the attention when it comes to government support.
Maybe one good thing to come out of the current financial crisis is a recognition that small business, like big business, needs to have some confidence about the availability of credit in tough times as well as when the good times roll, as we all trust they eventually will again, one day in the not too distant future.
It seems noteworthy also that the Small Business Administration (SBA) has been given a key role in the implementation of the Act.
What does the Act provide?
As explained in the official Government handout, the Recovery Act:
- provides small business tax benefits
- provides small business access to capital and tools to drive economic recovery
- helps unlock credit markets
- temporarily eliminates some loan fees on SBA 7(a) and 504 loans
There is a neat multimedia explanation, a Small Business Administration self-paced briefing. “Investing in Small Business”, on how the Act works for small business, with bullet-pointed slides and voiceover.
Lauren Owen at the biznik site provides an extended, plain English explanation of what the Act provides for small business.
I don’t know what other countries are doing that is specifically targeted to helping small businesses survive the global economic meltdown. If you have information on that, I hope you will share it here.