Bohemia, NY (PRWEB) December 27, 2013
Lawrence Teicher, founder of CFO Consulting Services, responds to an article published by Businessweek on December 10th, which discusses how many banks are inflating costs for small business loans.
According to the Businessweek article titled “Low-Cost Loans for Small Businesses Turned Down By Banks,” small business lending has never fully recovered from the financial crisis. Most banks have elected to maintain stricter lending standards, pushing many small businesses to search for alternative lending sources. However, most alternative lending services only offer capital with super high interest rates. Businesses that are desperate for loans are subjected to high costs.
The article says one CEO is trying to change that for small businesses in the tri-state area. Roberto Barragan, CEO of nonprofit lender Valley Economic Development Center (VEDC), “launched a $20 million fund to lend to small businesses in New York, New Jersey and Connecticut.” VEDC will provide loans to small businesses from $50,000 to $500,000 with interest rates averaging around 6-8 percent.
Lawrence Teicher, founder of CFO Consulting Services, says these types of Community Development Finance Institutions can greatly help small businesses and startups that have been previously denied by banks. “These CDFIs help small businesses get back on their feet with generally lower interest rates than banks and alternative lenders,” he says. “With the Small Business Administration still trying to recover from the shutdown and fiscal crisis, it has left many small businesses in the dust. CDFIs have picked up the pieces, lending over $1.5 billion to small businesses in the past 5 years. Small businesses in the tri state area that don’t fit strict standards set forth by the banks should look into VEDC.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.