Inflation Rises and Small Business Hiring Slows
Even more than usual, today’s a good day to focus on the things you can control.
Good Morning!
Here are today’s highlights. For what it’s worth, there isn’t a lot of uplifting news today -- in the business world or otherwise. I hope to be back tomorrow with more examples of business owners finding solutions and seizing opportunities.
Despite the tariffs, China’s exports are holding up quite well.
A Bank of America report shows a decline in small business hiring.
In Los Angeles, even highly acclaimed restaurateurs are giving up.
Kahlana Barfield Brown had a fashion brand all set to debut in Target—when the political winds shifted.
FINANCE
So far, Ami Kassar says, the SBA’s new loan program for small manufacturers is just talk: “In recent months, the Small Business Administration has been busy announcing new initiatives aimed at supporting American manufacturers. On paper, these efforts sound bold. In practice, at least so far, they’ve amounted to more public relations spin than meaningful support. The first announcement came earlier this year, when the SBA stated its intention to increase the maximum government guarantee for manufacturing loans from $5 million to $10 million. That would certainly be significant—if it actually happened. However, it requires congressional approval, which has not yet occurred. And even if Congress does approve it, the SBA will still have to write the rules, and then lenders will have to decide whether they’re willing to participate. For now, it’s a proposal, not a reality.”
“Then last week, the agency rolled out something new: the 7(a) Manufacturer’s Access to Revolving Credit Loan Program, which will be available on October 1st. This program is designed to give manufacturing businesses access to loans or revolving lines of credit of up to $5 million. Once again, on the surface, it appears to be a potentially helpful tool.”
“But here again, the devil is in the details. Now that the rules are out, lenders will need time to study them. And then they’ll have to decide whether it makes sense to participate. If history is any guide, many lenders will take a cautious approach.” READ MORE
