Financing for small businesses in these difficult economic times was the subject of a Senate Committee on Small Business and Entrepreneurship roundtable discussion today in Washington, DC. Federal Hill Main Street Executive Director Jane Seebold was invited by Sen. Ben Cardin's staff to provide information about the experiences of Federal Hill businesses in securing new Recovery Act loans.
Securing working capital for inventory purchases and other operating costs is a challenge here and elsewhere, as banks have not loosened borrowing requirements since the economic downturn. Small Business Administration loan guarantees are assisting some larger small businesses, but banks are still balking about lending to the smaller local businesses like those in Federal Hill.
The Senate committee staff is collecting input so they can recommend modifications to the federal Recovery Act legislation to make it more responsive to small business needs.