For those of you contemplating starting a new (non-commodity farm) agribusiness venture, 2009 might be your year. On March 17 President Obama unveiled a multifaceted small business initiative to try and stimulate the small business economy with a major focus on unfreezing small business lending. Reactions to the plan were generally favorable, although I personally am not sure this is enough to turn around our economy. -Most of you know I believe that much more should be done to assist small business and entrepreneurs in America since small biz is the engine that drives this county and is the largest single employer.
The key elements of the package included reducing fees on SBA 7(a) and 504 loans, the Treasury buying $15 billion of small business loans on the secondary market, and a business stabilization loan program. Giovanni Coratolo, director of Small Business Policy at the U.S. Chamber of Commerce called the program a "huge step in the right direction."
It’s good to be reminded that not all our venture financing has to be dictated by the USDA/FSA and FCS. See what your state SBA can do for you.
The White House and SBA released a number of documents detailing the plan. They can be accessed from the links below:
1. SBA Statement on Recovery Efforts
2. White House Fact Sheet
3. Talking Points
4. SBA Policy Notice - Up to 90 Percent Guaranty on 7(a) Loans
5. SBA Policy Notice - Fee Elimination Provisions
6. FAQ for Small Businesses/Entrepreneurs
7. Lender Q&A