One way the 2009 Stimulus Bill will help small businesses and franchises obtain SBA (Small Business Association) Loans, is by the creation of the Secondary Market Lending Authority. This Authority will establish an office in the SBA that is able to provide loans to Secondary Market Broker-dealers. The Secondary Market Broker-dealers can use these funds to finance the inventory of the government guaranteed loans closed under the Small Business Act.
Injecting these funds into the secondary market, causes increased liquidity and makes for an active and competitive market. Liquidity is simply how easily an investment can convert to cash. Liquidity is an attractive reason to invest, especially during uncertain economic times.
As a final result of this increase of funds to the Secondary Market Broker-dealers, money available for small businesses, underwritten by the SBA, will be more accessible.
What this means for you, as a small business or franchise owner (future owner), is to prepare your financial statements for the most recent tax year and begin the application process.
Follow for pdf of 2009 Stimulus Bill 2009 Stimulus Bill, Small Businesses and Franchises
