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The Small Business Jobs Act, passed in September, authorized the creation of a $30 billion fund run by the Treasury Department that offers ultra-cheap capital to banks with less than $10 billion in assets. The idea is that pumping capital into small banks will get money in the hands of Main Street businesses.

The Fed’s solution: America is going to have to brainstorm its way out of this one.

No easy way out: Policymakers have made a big show of studying the small business credit crunch. The Federal Reserve hosted a series of more than 40 meetings across the country last year with small businesses, financial institutions, trade groups and regulators.

Its conclusion? The problem is “complex and multifaceted.”



But government watchdogs have been concerned that the credit clampdown went too far, cutting viable small businesses off from an essential financial resource. Larger businesses have access to other capital sources, like selling stock or courting outside investors. A typical small business, like your local dry cleaner, has one just option when it comes to getting a credit line: a bank.

“Small businesses are important to the national and local economy, but their existence depends on their ability to access credit,” the SBA said in its report.


Banks slashed small business lending by $43 billion

CNN Money




File Format: PDF/Adobe Acrobat – Quick View
Aug 20, 2010 Last September, the White House released “A Strategy for

Innovation | The White House

Advise the Advisor – Your Direct Line to the White House. Advise the Advisor


My Note –

One of the notes in the CNN Money article mentioned that Sam’s Clubs is offering small business loans through their membership. There could be other initiatives like that through unions, through credit unions and apparently some of the tech companies, like Intel, IBM, HP and others have put up some tens of millions of dollars to support innovation. So, maybe it is a matter of going to other places, alternative sources of funding, creating more creative packages of funding for starting or continuing / expanding a small business.

Apparently with community banks receiving access to $30 billion dollars, money for small business lending is available. But, is it only available as they are requested for it by a small business or a startup entrepreneur – or is it sitting their in the banks without anyone getting loans from it?

With as many banks that have failed across the US since 2008, and that continuing substantially even as this year has barely started – it seems that lending for small businesses would be part of their business model to maintain bank’s economic opportunities. They make money by lending.

It would be interesting to see more information about this. The small business administration has a couple programs that are supposed to make immediate access to at least a yes or no answer on whether they would guarantee a business loan – but a bank has to be located that will make such a loan. Even during the best of times, there were actually very few banks that dealt with the SBA guaranteed loan program. Wonder what it is like now?

Even as the White House, the Congress, the Bankers during roundtable discussions and conferences, economists, and even Wall Street calls for the American public to create new small businesses and innovations as a way to “save America” and restore our economic foundations – they have rigged the game in a manner which excludes funding for any of those things. That would be a problem. Either they would have to have a paradigm shift within the financial industries about how they think about it when faced with the funding question from an entrepreneur or entrepreneurial team as a proposition or request is made – or this time next year, we will have the same problems we do today.

– cricketdiane


I stumbled on this –

This is amazing.

Beginning Entrepreneur Loan Program 

This program assists in business start-up financing by providing a financial institution with an 85% guaranty of a loan not to exceed $100,000.

A North Dakota resident, who has graduated from high school or received a general equivalency certificate, and has had some training by education or experience in that type of revenue producing enterprise. The applicant(s) must have a net worth of less than $200,000.

Bank of North Dakota may guaranty up to 85% of the amount of principal due the lender. The maximum loan may not exceed $100,000. The Bank may approve a guarantee on a loan up to $5,000 to a beginning entrepreneur for business start-up expenses including accounting, legal and business planning. The Bank may approve a guarantee on a loan up to $25,000 without requiring collateral for the loan.


For more information: 


Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5777
1-800-472-2166 ext. 5777
TDD (Telephone Device for the Deaf) 1-800-643-3916



University of North Dakota Center for Innovation


Absolutely Amazing. I wonder what else like that might be around in other states and through other places around the nation.



Maybe it is time to look about a bit.