Bridge Loans from the SBA

Posted by: Jeremy Quittner on May 14, 2009

Get ready for the Small Business Administration to announce the availability of $35,000 bridge loans for distressed small businesses. John Miller, director of marketing for the SBA’s New York District Office, told a group of small businesses owners at a recent SCORE/OPEN event in New York City that the SBA would probably make them available within 2 weeks. One bank source and a representative from a national trade group representing SBA lenders said the announcement would likely come during National Small Business Week, which starts May 17 in Washington.

“Who’s making loans these days? Well, not too many people,” Miller said, adding the bridge loans will come with a 100% government guarantee. Maybe that will prod bankers to start lending to entrepreneurs.

Reader Comments

Neil Farbstein

May 15, 2009 11:29 PM

They couldnt come too soon.

Scott Gingold

May 16, 2009 09:02 PM

As I work with small businesses (www.confidentialcounselor.com) every day, based on my direct experiences with the SBA, I am not particularly optimistic. I would be very happy to be wrong in this case. My other company (www.powerfeedback.com) just did a quick survey among small businesses on this topic. Sadly, my own skepticism was rampant among the responders.

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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