Are you a small business owner still struggling through the economic downfall? You are not alone. Many small business owners are asking for help from the U.S. government, and their requests may be answered in the form of re-directed Troubled Asset Relief Program (TARP) funds.
Untapped TARP in 2009
Since the start of the financial crisis, the slumping North American economy has caused both small and big business owners to continue layoffs, tighten budgets, and even close down permanently. However, thanks to legislation passed in 2008 through TARP, the government has been helping keep business loans active and alive, rather than let them default and foreclose.
$700 billion in TARP funds were earmarked to help banks and financial institutions keep solvent by purchasing non-performing loans. However, much of that money has not yet been distributed. In response to available funds and continued economic downfall in the small business sector, the Obama administration has plans to help small business by redirecting some of those funds toward building and expanding jobs.
Redirecting TARP to Small Enterprises
Although no official White House announcement has been made, the Washington Post reported that an inside source says a new plan in the works to re-direct some of the TARP funds toward unrestricted bank loans for small businesses. That is good news for small business owners who are having trouble acquiring lines of credit and other bank loans that are needed for cash flow or capital equipment purposes.
The Washington Post states that the Obama administration held a summit in December with the banking industry to encourage more lending, particularly to small businesses. The White House source stated that money from TARP will be used to promote unrestricted loans for small businesses. This change will be a tremendous help for business owners who need cash to pay bills, buy assets, and particularly to expand and hire more employees.
In addition, the White House is planning to ask Congress to change existing TARP rules so that current and new loans will have fewer restrictions for qualification and easier payments.
If you are a small business owner who is struggling, help may be on the way. When the new TARP rules are put into effect, take advantage of the government’s generosity and access the money you need to expand and grow.