The U.S. Small Business Administration’s West Virginia office has a great idea for spurring small business: speed dating. The office sponsored an event that provided a forum for small business owners to present their business plans to bank lending officers and economic development officials. Each entrepreneur had five minutes to request funding, before they had to move to another of the 25 lenders and repeat the pitch.
Small businesses have been suffering due to a lack of funding. Banks have been leery of lending, but businesses cannot expand or be created without an influx of cash. West Virginia’s Small Business Administration Office used speed dating to reverse that trend by offering business owners introductions to lenders. The lenders encouraged the business owners to call and follow up even after they had used up their five minutes of face time.
New legislation promises to spark new business lending. President Obama’s job bill waives the fee that small businesses pay for a SBA (Small Business Administration) loan. The legislation also increases the government’s guarantee of SBA-backed loans to 90%. In addition, it grants a $30 million fund to community banks t lend to small businesses.
Between the new legislation and the states’ activities to get business moving, small business owners can expect an increased flow of funding to their companies.