Bohemia, NY (PRWEB) October 21, 2013
Lawrence Teicher, founder of CFO Consulting Services, responds to an article published by CBS News, which explains how the government shutdown had negative effects on small business.
According to the CBS News article titled “Shutdown cutting off loans for small businesses,” the government shutdown includes the closure of the Small Business Administration, a government entity vital to the world of small business. The Small Business Administration (SBA) is responsible for supplying businesses with low-rate loans to the tune of tens of billions of dollars each year. These loans are critical sources of liquidity for a lot of small businesses around the country, especially with the holiday rush right around the corner.
The article continues to say that the SBA “also helps small firms export internationally, obtain government contracts and secure start-up financing- all of which is also now on hold.” As a result of the SBA shutdown, small business owners have had to resort to the higher rate loans offered by big banks or alternate lenders. The increased strain put on small business by the SBA closure is expected to impact the economy long after the government shutdown has ended.
Lawrence Teicher, founder of CFO Consulting Services, says small businesses have suffered getting loans for years, but the government shutdown could force many small businesses to pay a higher price or a higher rate. “Small private businesses were not exempt from this government shutdown,” Teicher says. “This pushes small businesses to dig into funds they can't afford to use or to seek financing from alternate lenders at a much higher price. This shutdown also delayed a program that was supposed to launch this month, which required the SBA to waive all guarantee fees for loans under $150k. This program, as well as all other programs won’t be able to start until the debt ceiling is lifted. Many small businesses were counting on help from that program.”
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.