As the year 2011 is starting to gain its momentum back the Federal Government is looking forward to contributing more to the small businesses in hopes of moving the economy forward. Mr. Ben Bernanke said Thursday of last week to The Wall Street Journal that the economy should expand at a healthy pace of between 3% and 4% this year, but that still won’t be enough to cut a high unemployment rate.  While the government has been attempting to help small businesses grow earlier this year by helping them achieve their financial needs, they will continue offering new ways to help not only the small business owners but the banks that are initially distributing the funds.

The government is aware that the risk of some of the loans that are presented to banks are too high of a risk for the bank to take on and so it has become apparent to the United States government that they have to aid the banks in mitigating some of the risk by taking on some of the risk themselves. It is important for the borrowers to still keep in mind that even though the government is making a conscious effort to help them meet their financial needs for starting and maintaining their business that they will still need experience and plans on how their business will grow in order to qualify for the government’s help.

A large amount of companies that we have in the United States are small businesses yet they only make up a very small amount of the income that will help the economy.  The main goal of the federal government this year will be to concentrate on smaller businesses given that the larger businesses have already seen their loses from the recession be recovered in a significant way, while smaller companies have yet to fully recover.

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