Visit Us

Uncategorized

Helping Your Business to Thrive in the Face of the Government Shutdown

Because of the government shutdown, many businesses have been left in precarious circumstances at a critical time. Holiday commercial activity is approaching quickly, making everything from supplemental staffing to increased inventory a significant need. However, limited availability of capital may make it difficult to proceed with your plans, especially if your small business loan from the Small Business Administration is held up because of current agency inactivity and furloughs.

Although there is no foreseeable end to the government impasse, you may be able to keep your company afloat or facilitate its growth by considering a solution with Kabbage. In light of the government shutdown, Kabbage can offer an alternate working capital fund to keep your business running.

Consider the following facts and issues affecting businesses and company owners:

  • The Small Business Administration approved $570 million in loans to small businesses on September 30
  • Pending applications or disbursements may be affected until the resolution of the government shutdown, leaving many small companies waiting for assistance indefinitely
  • Small businesses, those with less than 500 employees, have struggled in recent years, experiencing a 20 percent drop in loan availability since 2007
  • Small business is responsible for approximately half of the nation's private employment; 28 million small businesses employ 60 million Americans
  • Employment of individuals by small businesses is approximately 30 times that of employment by federal agencies

What Does this Mean for Your Small Business?

Your company may not be able to wait on the government's resolution. Critical cash needed to grow, especially as the holidays approach, may need to come from alternative resources. A government shutdown working capital fund from Kabbage may enable you to navigate this uncertain time with tangible resources.

Kabbage has advanced more than 100 million dollars to date, providing more funds to small organizations in 2013 than were provided by the SBA. Kabbage continues to grow as an excellent funding alternative, enabling organizations to meet immediate needs. Kabbage's business loans are easily managed without the need to deal with expensive interest issues tied to traditional loans.

A Kabbage business loan is easily understood and managed. Each loan is provided with a six-month repayment plan. After a Kabbage score is determined based on a simple application, your line of credit can be computed and disbursed. Repayment of the business loan is distributed over a six-month period with an assessed fee added to each month's payment. You are free from issues like accrual of interest and fluctuating interest rates, and you will know your exact costs upfront.

Kabbage's customer base is experiencing an average growth rate of 72 percent after making use of our Kabbage cash solutions. The process is fast, enabling our customers to spend more time focusing on their companies and less time worrying about cash flow. During the government shutdown, a Kabbage working capital fund can help you keep your business running.

Read more about the impact the shutdown is having on small businesses.

How has the shutdown affected you, your business or other business owners that you know? Leave us a note in the comments section to explain.

email

Kabbage Team

Kabbage is here not only to provide access to the small business funding you need, but to also help you grow your business through free marketing tips, webinars, tools and more. Is there something you'd like us to cover or want to get your small business featured on our blog? Send us a note at content@kabbage.com.