Community Development Loan Funds Can Help Small Businesses

John Arensmeyer

John Arensmeyer

In this tough economy, small employers are struggling to get access to the capital they need just to stay in business, let alone expand and give our economy the boost it needs. Small businesses are the nation’s job generators. Their inability to grow isn’t helping our recovery, it’s stalling it.

Fortunately, there are a variety of resources that can help entrepreneurs overcome this hurdle. The Treasury Department is teaching banks and community development loan funds—nonprofit organizations that borrow money from multiple sources and lend it to small businesses and others—how to secure funding that they can pass to small businesses. Community development loan fund representatives can join a free webinar on Monday, June 20 to learn about the application procedures for receiving funds. For more information, click here. However, the deadline for these organizations to apply for federal funding is Wednesday June 22, and we hope they take advantage of this great opportunity before it’s too late.

Since the financial collapse of 2008, small businesses have found it difficult, if not impossible, to get loans to keep their companies afloat or expand. Even if they have a perfect credit score, the flow of cash and credit from banks to entrepreneurs has all but disappeared. For example, the government already has a variety of incentives for small firms to purchase and install energy-efficient equipment or retrofit their buildings, and they provide tax credits for those who hire workers. However, many small businesses don’t have the available funds necessary to cover the initial costs. It’s these reasons and more that plant lending, specifically the lack of it, at the top of small businesses’ list of concerns.

It’s encouraging the government is taking steps to reach out to banks and other organizations that want to help get small businesses the capital they need to do what they do best—grow our economy and create jobs.

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