With the offering of $30 billion SBLF, officials say it is a way to find affordable capital in US communities and it thus provides firms the impetus required to hire and expand amid a limping recovery.
Almost 60 percent of banks that filed applications for being part of the program have been rejected without any explanation given by the treasury. Just $2.4 billion is disbursed and it prompts disappointment and befuddlement.
‘Small Business Loan-for-Job-Creation Program’ of WSFS Bank is a $25 million pool as it provides low interest, no-fee, no-closing cost loans to local businesses. It commits to using money for creation of jobs. The program is going to infuse affordable capital into State’s economy.
What is important is to answer whether the capital is really required. Demand for loans is frail now, in-case, of small businesses. Favorable financial terms shall induce firms to try out the credit market once again. Three year amortizing $500,000 loan for 3.2 percent is extended to businesses. It is really left on banks and businesses to get the economy on track again. Businesses should be using loans for job growth and not just to fulfill discrepancies in balance sheets or for refinancing older loans. Also, filing loan applications is important by the end of the year.
The concept ‘Small Business Loan-for-Job-Creation Program’ took shape when treasury conveyed WSFS that it did not qualify for SBLF. The SBLF turned down an application of $75 million filed by WSFS.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com