A recent study from the Kauffman foundation reveals that small business formation rates remain steady even in times of economic downturn, but this study says nothing about the success rates of small businesses in trying times. It may be good news for entrepreneurs who are considering business formations that the administration has recently proposed budget reforms that will open lines of credit to new small businesses.
President Barack Obama has proposed increased funding for the Small Business Administration and its programs. The SBA stands to have a working budget of $994 million if the legislation passes.
The legislation offers increased caps on small business loans to enable small businesses to grow and hire workers. Additionally, it allocates $25 million specifically in microloans to help entrepreneurs and startups get their businesses booming.
The proposed funding will also provide $1.1 million to the SBA to improve their own infrastructure; this money will be used to increase the efficacy of startup counseling and other services offered by the government agency.
Entrepreneurs can visit the SBA website or seek the council of professional incorporation services to learn how to get their own businesses started in light of these increased credit lines.