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Local Law Firms Home > Business Law News > Money is a Big Issue for Small Business Owners A report released last year by the Ewing Marion Kauffman Foundation stated that new businesses add approximately three million workers each year, while older businesses lose approximately one million annually. It seems, that based on these figures, starting a new business is a good way to support economic growth in the country. Unfortunately, financial institutions and lenders don't make this a simple process; the Small Business Administration does not make it too easy, either. One company owner started a new business venture over seven years ago that showed a loss last year due to the economic state of the country, and when the owner requested a small business loan from the bank, it was suggested that they wait until the end of the year to see if figures reflected an upward trend. Even with a prosperous company, corporate and personal credit history, and a good track record, this is still an issue. The risk to the mortgage company is not a big one at all. The building is assessed below market so in the worst-case scenario of the business owner defaulting on the loan, the lender would obtain a building that was recently restored back to the previous condition before the loan was obtained. The best-case situation, however, is that in a moderately short amount of time, the owner could have remodeled their space, obtained tenants, and created several new jobs in the process. To be successful in the corporate world, business owners need three essential components: a good idea, confidence in that idea, and enough money. There's no lack of ideas out there, and a business owner, by definition, is usually made of confidence. Money is often the only problem, and that's where the government can assist. Instead of offering tax breaks to company owners that would compare to an insignificant dribble of a few hundred dollars a year, let's give United States citizens the chance to invest that money in the business of their choice. Are you the owner of a small business with legal questions? Our business law lawyers are here to help you! Whether you have a legal question regarding your business or simply need legal advice, contact a small business law attorney in your area today to get the answers to your questions.
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