The U.S. Small business administration granted $1.98 million loan to an Agawam business – ‘the Millennium Press Inc’. This has been a lifeline for the 13 employee Millennium Press Inc. The future effectiveness of SBA is uncertain as the 2012 budget proposal might either lead to a decrease in funding or may result in a status quo.
The 2012 proposed budget of President Obama guarantees $985 million to Small Business Administration to lend out to businesses. This fund is more than $824 million that the SBA received in 2010. In 2010, the federal stimulus programs too increased SBA’s budget to $1.8 billion.
Some of the stimulus funded program of the SBA included a guarantee of 90 percent of loans and waiver of fees. As things return to normal, 25 small business loans are been approved by SBA in Massachusetts every week. The loan grant received by Millennium Press has a guarantee of up to 75 percent. This guarantee instilled the required confidence to New Alliance Bank in West Springfield to offer the loan to Millennium despite losses that the company suffered.
According to the president of Millennium Press, ‘James Sullivan’ this fund will consolidate the debt he had owed on equipment and will also make available some operating capital.
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