Designated Blogger: Lori Anderson, ISA President & CEO
Recently I went with a group of my fellow small business trade association executives to meet with U.S. Small Business Administrator Karen Gordon Mills and her staff. This was a great opportunity to talk about increasing access to capital for small businesses.
Specifically, I spoke with Administrator Mills at length about the trouble that many of our members have in obtaining the SBA's "ARC" loans. These are loans for up to $35,000 that can be paid back, interest-free, up to 18 months later. However, many banks are hesitant to offer these loans, and many small businesses need different types of financial assistance in the first place, such as SBA 7(a) or 504 loans.
Much of our conversation centered on how we can improve the loan process for small businesses, since access to credit can be a major stumbling block to remaining solvent, job creation and economic growth. We talked about making a more streamlined loan process, as well as establishing new criteria for evaluating credit worthiness for loan programs. For example, right now the SBA focuses on how a small business has been doing the last two years as a condition of getting these loans. Perhaps they should also more broadly review how a small business has responded to the current economic crisis, or look at how a small business is restructuring itself for the long-term as consideration for obtaining these loans.
Some of these reforms can be accomplished at the regulatory level, but some need to be enacted by Congress. One bill that helps is HR 3854, which passed overwhelmingly in the House of Representatives last month. Now it's up to the Senate to pass their version of the bill and get it signed into law. You can visit ISA's Legislative Action Center and contact your U.S. Senator to let them know that you want them to support this effort to increase access to credit and investment capital for small businesses.
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Here I am (second from top right) telling Administrator Mills (fourth from top right, hands folded) about how important on-premise signs are to the health
and success of small businesses. |
This is the type of event that ISA goes to on a regular basis to help spread the word about the on-premise sign industry in Washington, DC. Just in the past year, in addition to the SBA, we've been in to see high-ranking officials and staff at the Department of Energy, the Occupational Health and Safety Administration, the House Small Business Committee, the House Judiciary Committee, the Senate Environment & Public Works Committee, the Senate Energy Committee, and dozens of other important congressional offices.
In the weeks and months to come, we'll be getting in to meet and educate officials and staff at even more regulatory agencies and congressional offices, to let these decision-makers know just how important on-premise signs are to small businesses, communities across the country, and the American economy.