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.
Below are a few facts that the Congressional Oversight Panel report that TMC Development finds noteworthy:
- 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.
Please refer to the NADCO website and the Congressional Oversight Panel report for more information.