The reading level for this article is All Levels
The TARP bill has been incredibly helpful to a number of financial institutions, and while the large corporate banks have gotten most of the recognition in this regard, there has also been a significant amount of aid to small organizations like the SBA in the small business loan stimulus package. Though the organization has gone through some tough times, with the help of the bill it is once again up and running smoothly.
The SBA has been around since 1953. Originally enacted by the Eisenhower administration to help World War II veterans get up and running with their own small businesses, the administration has grown to become the largest guarantor of business loans in the United States with a portfolio worth over $45 billion. The SBA has expanded to include other groups in its lending practices, such as women, minorities, the disabled, and a number of other criteria that qualify for loans, such as green projects.
However, the SBA faced some significant difficulties in the nineties under the Clinton administration. The organization was also almost disabled in 2004, as it was facing difficult opponent legislation and fiscal insolvency, which would have made it very difficult for members of many groups to get a small business loan.
Stimulus packages, however, have a tendency of shedding light to these issues, and with the help of $40 million from the TARP bill, the balance of the loan package has once again been restored, as has the administrative overhead. A significant amount of money has gone into the development of the Microloans program as well, making it exceptionally easy for members of various groups to qualify for loans under 35,000.
Today is not a bad day to get into small business if you happen to be in the mentioned demographics, and it is all due to help from the recent small business loan stimulus package.
