Small Business Funding - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Small Business Funding

They're often called the heart beat of America... Small businesses are a vital part of the economy, both across the nation and in the Panhandle.

With the recent drop in mortgage interest rates and the historical interest rate cuts on Wednesday, it may seem like the next people who need help are small business owners. But, what may seem like help on the surface could be trouble waiting to happen. As of right now, the federal Small Business Administration does not give loans, they only guarantee bank loans.There's talk in Washington of allowing the SBA to give loans, but it's not all good news.

SBDC President PJ Pronger says, "if the banks are not making loans the SBA comes in and starts making loans that the banks won't make, I don't think that's going to be a service to the businesses because there's something wrong with the picture. It's a case where they're going to be enabling people to fail." Pronger doesn't think the initiative will pass in Washington because of that very reason.

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