green field with blue skyYou have to spend money to make money.

There’s just no way around it.

But you have to have some first.

The $787 billion stimulus package that President Obama will sign into law today has provisions in it for small business that should help gain access to capital.

The stimulus bill authorizes the Small Business Administration to reduce, and in some cases eliminate, the fees required to participate in their loan-guarantee program.  The program insures banks against default by small business borrowers.  The bill also increases to 90% the percentage of qualifying loans the SBA can guarantee.

If small businesses need money right now, the bill offers “small business stabilization financing” which provides funds to pay off existing loans.  The SBA will provide up to $35,000, which small business can then use to make up to six months of payments on previous loans.  The loans won’t have a payment due for the first year and businesses will have five years to pay them off.

Other stimulus measures for small business include: microloans, hiring incentives, equipment expensing, loss accounting and unfreezing the loan market, so that small business loans can be resold to investors.

For more on what the stimulus package means for small business, see here.

Most small business owners we know, have passion, desire and a drive to succeed.

They work long hours and care about their employees.

They have great ideas and work on improving their products and services.

But without money, they simply won’t succeed.

Money gets to the true heart of the matter, just like a good marketing plan.

The point being…that it doesn’t matter how great your product or service is.

What matters is the business system you have built around it.

No system, no plan, no money, no business.

In this environment, all those without a system, will be exposed and suffer.

So create a system with metrics and goals and take advantage of the help that has just become available.

Do you agree with this post?  Let us know if you think the stimulus bill will help small business.