Should the SBA Be More Flexible?

U.S. Representative Peter Welch (D-VT) has introduced a new proposal aimed at making the SBA more flexible during certain situations. According to The Street, the proposal grew out of a series of meetings with Vermont small business owners after Tropical Storm Irene. The smallest businesses didn't have the staff to complete the paperwork required for SBA disaster loans, and in other cases, the records needed for the application had been destroyed or made temporary unavailable by the storm.

"The most crucial thing I heard from small business owners is they had to get their doors open again so they could get the cash flow going," Welch said. But many, hampered by the storm, were turned away or denied the disaster loans they so desperately needed because of the SBA's hardline stance on policy. Welch's proposal would be for businesses with fewer than 50 employees, who would be eligible for smaller "micro-loans" from the SBA that can be critical when business are trying to recover from disasters.

What do you think of the Congressman's proposal?

Read More at The Street:

http://www.thestreet.com/story/11610851/1/vt-rep-welch-calls-for-greater-sba-flexibility.html