March 3rd, 2010
Important Facts about Small Businesses in America
In a recent article posted by the NADCO website the importance of small businesses in America was highlighted.
- Small business creates over 60% of all new jobs for our economy (and likely more today).
- New jobs cost money to create: both working capital and fixed assets.
- Commercial banks are under continued regulator pressure to restrict Commercial Real Estate (CRE) lending, given general declines in market values.
- 504 can provide leverage to assist banks by absorbing some of the risk of CRE loans.
- Without capital, there are no new jobs. Without jobs, this recovery is not sustainable.
- A crisis is coming as many CRE loans will require refinancing in the next four years, with no obvious sources of funding for small businesses.
- Without the ability to refinance debt, small businesses will have few options for remaining in their locations, or even in business.