Unpacking the Stimulus Package, Vol. 8
The National Small Business Association’s (NSBA) Mid-Year Economic Report, released today, indicates that small businesses are struggling despite stimulus help, with decreases in three key indicators of a healthy business – revenues, profits and employee size. Despite Small Business Administration’s “ARC” loan program (America’s Capital Recovery) and expanded 7(a) loan program, small businesses say that access to capital is still one of their biggest challenges. 80% of businesses surveyed in July 2009 say they have been negatively impacted by the credit crunch, up from 69% in December 2008. The NSBA report shows that only three percent of small businesses have seen a positive impact from the stimulus bill. Of that three percent, 72% say the positive impact has come from customers spending more, with only 14% reporting a positive impact as a result of access to lending programs. The full report can be found here.