Most people are aware of the fact that the recent election has incited far-reaching implications for small-business owners. You may be wondering just how all that political mumbo-jumbo affects your business in particular. The SBA, which has suffered from neglect in the past few years, is in desperate need of funding. Even in the past few months, two-thirds of U.S. banks have tightened their lending standards for small business loans because of the SBA’s money shortage. Across the board businesses are finding it difficult to pay their workers and stay afloat.
The DRDA P.C. firm is well aware of the negative affects that the economy has had on entrepreneurs. People looking to open a small business or franchise are having a difficult time finding the start-up capital they need to make their dream a reality. That being said, DRDA has come up with a powerful financing alternative called a BORSA plan. Completely legal, BORSA (Business Owners Retirement Saving Account) is a tool that allows entrepreneurs to make use of the funds accrued in an IRA or 401k for start-up capital, or for the equity injection required for an SBA loan. The money can be used to fund an existing business, franchise, or start-up without incurring taxes, interest or distributions.
As President Obama’s entire campaign platform was centered on the resurrection of U.S. small businesses, he is starting by focusing on the SBA. He has now confirmed that Karen Gordon Mills, a seasoned venture capitalist, is to head up the U.S. Small Business Administration.
"We must strengthen the small businesses that are the backbone of the American economy,” Obama said, "With Karen Mills as administrator, America's small businesses will have a partner in Washington who will help them create jobs and understand the challenges they face.”
Senator John Kerry, chairman of the Small Business and Entrepreneurship Committee, applauds Obama’s choice.
“Karen has been a champion for small business owners in a state economy that depends on small firms. As a successful entrepreneur, Karen understands firsthand what it takes to build and grow a firm,” says Kerry.
Speculated to be advocate for the nation's women-owned small businesses, Mills was the founding partner and director of Solera Capital, a New York venture capital firm. Though without a small business background, many people remain wary of her influence on the SBA. Only time will tell if this MBA-toting businesswoman can repair the damage done to the once thriving agency.
“Small business will be an important focus of this administration as we work our way through these difficult economic times," said Mills.
President Obama proposes the following initiatives to help small business owners:
- Open a nationwide emergency lending facility
- Temporarily eliminate lender and borrower fees on SBA guaranteed loans
- Strengthen small business programs targeting women, service-disabled veterans, and minorities
Even with the SBA in shambles, there are alternative methods to procure financing for your small business. To learn more about how the BORSA plan can help you get the start-up capital you need to open a small business or franchise call DRDA P.C. at 281-954-6040 today or visit www.drdacpa.com. Fill out the form below for more information.
