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Small business

Though millions of dollars are available for small businesses, the money is not being claimed. Image: Flickr / mhofstrand / CC-BY-SA

Getting businesses the money they need has been the focus of recovery efforts. Loans and stimulus money have been focused on creating jobs through small businesses. Many low-interest and no-interest loans, however, are sitting unused.

Using small businesses to create jobs

The American Recovery and Reinvestment Act, among other things, made a point of trying to create jobs. Small businesses account for a large number of the jobs created in the United States each year. The Small Business Jobs Act of 2010 created loans and stimulus programs intended to encourage businesses to hire. The idea is that small businesses are the basis of the economy, and providing money and support would encourage growth.

Small business loan availability

A large portion of the small-business investment strategy from both the federal and local governments has centered on loans. These loans are offered with little or no interest to be paid. Everywhere from Delaware County, Ohio, to Louisiana, small businesses can get bad credit loans and emergency money for expansion, new jobs and the purchase of equipment. In some states, this money doesn’t have to be paid back if the businesses fulfill requirements such as staying in a downtown location or hiring low-income individuals. In other states, the interest is subsidized and stays low.

Unused emergency loans

Much of the emergency loans offered to small businesses is sitting unused. Many businesses are choosing traditional financing because loans through the Small Business Jobs Act of 2010 come with too many requirements. Businesses have to fill out extra forms and ensure that they are hiring low to moderate income individuals. Just one Ohio county has more than $1 million of available money that hasn’t been lent, simply because businesses are returning to banks for financing. This presents a problem, because the government has said funding will be taken away if more than $100,000 sits unused.


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