Small Business Administration loans spur Houston startups
Entrepreneurs who underwent business formation in Houston recently found it easy to access funds thanks to a stimulus package from the Small Business Administration’s Houston District Office.
The agency used a portion of the 2009 stimulus package it received under the American Recovery and Reinvestment Act to increase loan guarantees from 75 percent to 90 percent and waive borrowed fees to promote economic growth in the community.
The program was such a success that the funds have already been exhausted by ambitious entrepreneurs in the area, reports Northwest Houston’s newspaper Community Impact. Even as the Houston office waits for Washington to help them continue the program, SBA officials think it has already made for a healthier small business environment.
Russell Hughes, lead business development specialist with the SBA, believes continuing this stimulus package is essential for national recovery. He told the news source, “the SBA program in conjunction with [the stimulus package] is vital to the economy at the current time.”
Future small business owners in the region may want to incorporate their businesses now with the hopes of being stronger candidates for the loans – Hughes told the source that even with the increased loan guarantee rates, companies that are established and have collateral are the strongest candidates.
To learn about inexpensive incorporation, entrepreneurs in Houston – and around the country – can visit professional incorporation service websites.