Credit makes the world goes round. Or is it money? In either case, with today’s economy many small businesses are faced with numerous challenges, especially due to the lack of available credit.
Varying Credit Needs
Some businesses need credit lines just to stay afloat (to cover overhead costs, pay their employees, etc.) while others need credit to fulfill numerous orders for products that are selling well. Without availability of credit lines for the latter scenario, these businesses are not able to keep inventories in stock for all the products that are essentially being sold; therefore, they are not able to reach their full potential for income, which further affects the economy.
So, with the varying needs of small businesses in America, how does the outcome of the election affect the already tight credit crunch for small businesses?
With the Election of Barack Obama
What exactly does Obama’s election mean to the small businesses of this country? Obama has publicly claimed that he plans to offer small businesses a tax credit as long as they provide insurance for their workers. Although he has yet to specify what this tax credit will entail, it will surely increase the amount of small businesses that choose to provide medical insurance for their employees.
In an attempt to boost our struggling economy as well as stop the hemorrhaging of U.S. jobs to overseas companies, Obama has promised that businesses will also receive a tax credit for every new hire they make here in the U.S. This is intended to inspire employers to discontinue shipping jobs overseas and consequently, lower our unemployment rate.
Lastly, Barack has made it a point to increase the amount of lending available to small businesses by requesting that the Small Business Administration put an indefinite halt on all fees charged to small businesses to obtain an emergency loan. He is also requesting an expansion of the loan guarantee programs that currently exist in order to provide more financial security for small businesses.