The Bailout comes to Main Street at last…President Obama and Treasury Secretary Tim Geithner announced three important initiatives that will help small businesses survive and thrive this near-depression.
- Small business loan fees will be eliminated from 7(a) and 504 loans – up to $75,000.
- The SBA is raising the maximum amount of these loans it will guarantee up to 90% – from a 75% ceiling.
- And with Geithner’s Term Asset-Backed Securities Loan Facility, an additional $15 billion of the TARP fund will be used specifically for small-business loan-backed securities, starting this month.
Um, you realize none of that will help, don’t you? Most commercial banks got out of SBA lending long before this mess started. Do you think they are going to hop back in and re-staff to fight over lending this tiny amount of funds? As a “program, “this is not even good eyewash.