SBA: 1-14-04 SBA runs out of money for first time in History, Depression-era run on banks

[dmcowen674]

1-14-2004 SBA Announces Restart Of Suspended 7(a) Loan Program

The U.S. Small Business Administration is reopening a popular loan guarantee program that was suspended last week for lack of funding.

The restart, described by a person familiar with the matter as a short-term fix facilitated by a shifting of funds, begins noon EST Wednesday when SBA will start accepting applications for the so-called 7(a) program.

1-8-2004 Small Business Administration Suspends Loan Guarantee Program

Jan. 8 - The U.S. Small Business Administration has temporarily suspended its flagship loan guarantee program just three months into the fiscal year, citing insufficient funding to meet unprecedented demand for loans.

The agency said that thousands of unprocessed loan applications will be returned to lenders, while applications already sent to processing centers will be canceled.

It is believed to be the first-ever suspension of the SBA's 7(a) loan program, which backs 40 percent of all long-term lending to the country's small businesses.

The decision to cancel those applications will force small-business owners to re-file their applications for consideration under a new $750,000 loan limit instead of the old $2 million limit. The lower loan cap was slated to go into effect Thursday, according to the SBA.

The change in limits has led something akin to a Depression-era run on banks in the last two weeks by those who feared the caps signaled funding problems at the agency and by those hoping to secure loans larger than $750,000 before the deadline.

 

[Tab]

I figure this is bush's fault? :|

 

[alchemize]

LOL god what an ass.

*sigh*
No, a "depression-era run" on banks would mean people running to the bank withdrawing their money, not clamoring for a loan

 

[Bleep]

LOL god what an ass

Yes you are. Why do you insist on trying to quell freedom of speach by using insults. Is this all you are capable of?
If god was to give the republicians a enema he would put the hose in you.

Bleep

 

[dirtboy]

Originally posted by: alchemize
*sigh*
No, a "depression-era run" on banks would mean people running to the bank withdrawing their money, not clamoring for a loan

There can't be a run on money, because Dave tells us that we are all in debt, so there isn't any money left in the banks.

 

[Chris A]

Good grief!! Most of this money ends up in big companies hands any way.. Big companies create small business and minority business's to cash in on these loans.. Name any entrepreneur who would need a 2 million dollar secured government loan? :disgust:

 

[alchemize]

Originally posted by: Bleep

LOL god what an ass

Yes you are. Why do you insist on trying to quell freedom of speach by using insults. Is this all you are capable of?
If god was to give the republicians a enema he would put the hose in you.

Bleep

Nothing quite like an insult to the deserving. But unlike you, my post had content. So who's the ass? Where's the refutation of what I said? If you weren't such a dumb ass, you'd notice I was innaccurate in my ass assessment.

I do retract the ass statement about Dave (in this case), since it was in the article. I missed it the first time. Here's the true ass:

U.S. Rep. Nydia Velazquez, (D-N.Y.), ranking Democrat on the House Small Business Committee, charged that the notice to impose the $750,000 cap on loans issued by the SBA "created a panic, causing a 1930s-style run on the banks."

I think her and Dave would get along well

 

[Zebo]

Originally posted by: Chris A
Good grief!! Most of this money ends up in big companies hands any way.. Big companies create small business and minority business's to cash in on these loans.. Name any entrepreneur who would need a 2 million dollar secured government loan? :disgust:

I know serveral. Just think each chair in a dentist office runs 250K, mine has 6. Any good franchise runs 2-3 million. Any business worth opening IMO costs more than 2M with the SBA requiring 15-20% typically.

A guy I graduated with opened a soil/water assay lab www.zymax.com. How this for small business? Just him to start in a garage.
1- ICP/MS 750K
1- IC 150K
1- HP GC 250K
1-Automated Mercury Analyzer-150K

Lots of Centrifuge, glassware, analytical balances, chemicals, books, methods, hoods, well over 1M. Not to mention things like rent, three phase power, telephones, office supplies , signage, advertising etc etc etc etc. And anything else a normal business might need.

Maybe you're thinking of a lemonaid stand?

Edit: 2M is a paltry sum which has'nt been raised in years... And all big businesses were once small businesses.. yet another reason to vote for Howard Dean who has pleged more money for small businesses. And more