In an effort to increase small business lending, Congress created $30 billion community bank fund to help businesses create jobs which is benefiting businesses in South Texas also. This fund will make it feasible for small businesses to find loans easily and hence they will be able to hire and expand operations.
U.S. Rep. Henry Cuellar, D-Laredo, says, “When small business owners go to banks, it’s hard for them to get the loans because the banks are being stricter.” This fund will help find balance between regulators and banks, in order, to enable businesses find more money. A conference call was hosted by Cuellar with business owners this month. The discussion took place with industry operators like restaurants, car dealerships and construction contractors so as to discuss ways to increase job growth in South Texas. Cuellar is going to hold regular quarterly conference calls with his district’s small business owners.
The way to lower unemployment rate is increased hiring by small businesses. The nation’s unemployment rate fell to 9 percent in January. In Texas, 20,000 jobs have been added by employers leading to 8.3 percent unemployment rate, well below national average. In Hidalgo County, unemployment rate remained 12.1 percent. Economic recovery showed continued sign of improvement.
Jobless claims fell below 400,000 and that is lowest since July 2008. The Dow Jones Industrial Average reached 12,000 for the first time in two-and-a half years. But although the unemployment rate fell, slow job creation is still a weakness as U.S. has added scant 36,000 jobs in January. This is short of expected 145,000 jobs.
For creation of jobs, congress should encourage tax cuts and lending to small businesses even if it is in terms of short term commercial loans . The creation of $30 billion fund last year will help banks leverage $300 billion in new loans for US small businesses.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to