Borrowing money isn’t the best thing for an owner-operator to do in a down economy like this. But if you must – or plan to do so as soon as the recovery becomes more evident – it’s good to know how the market is changing.
Small-business lending was dead in the water last year as the credit market collapsed, but CNNMoney.com reports that it’s “managed to heal itself” without help from the federal stimulus funding.
“Figuring out how to revive the secondary market has been a priority for the Small Business Administration and the Treasury Department. The government set aside billions to invest, vastly eclipsing the money earmarked for other small business stimulus efforts. But while government agencies struggled to get their programs up and running, the market came back to life on its own,” says the website.
SBA has been offering new money through its America’s Recovery Capital this year, but owner-operators keep running into roadblocks when they try to borrow, reports the Owner-Operator Independent Drivers Association.
— Max Heine