The Government Helps Small Business, But A Very Little

600pxuscomptrollerofthecurrencysealThe federal government decided to give small businesses a leg up. It is simply a token gesture and its likely to protect only a very small number of companies from the economic downturn.

A representative from the Small Business Administration said “Effective Aug. 1, the new standard allows small businesses with a net worth of $8.5 million or less and a net income of $3 million or less to qualify for the program.”

The current guidelines are a tangible net worth of $7.5 million or less and a net income of $2.5 million or less.

In other words, from a practical standpoint, corporations outside the very smallest companies will not have access to loans made available by the SBA. The agency indicated that “the SBA is conducting a comprehensive review of all of its small business size standards over a two-year period.”

By the time the SBA acts on expanding the pool of companies to which it will lend it may be very late in the current economic downturn. It is a clear indication that the government is not willing to grant any “emergency” measures to help smaller businesses along the lines of the aid it gave to consumers through tax rebates.

It is a bit like fiddling while Rome burns

Douglas A. McIntyre

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.