Tuesday, November 11, 2008

TARP to the Rescue?

Want to know when the federal bailout of the banks will result in new loans to businesses?

Perhaps not anytime soon.

That was the short answer given today by Neel Kashkari, who, as the Treasury Department's interim assistant secretary for financial stability, runs its Troubled Asset Relief Program (TARP).

As reported on CFO.com, Kashkari is confident that banks will ultimately use the capital to extend business loans to creditworthy businesses and consumers. That being said, "the last thing we want," he added, "is to encourage banks to resume the poor lending practices that are the cause of the current economic problems."

In other words, just because there is bailout money, don't ask for any if your business cannot demonstrate the ability to repay the loan.

Don't wait for TARP to bail you out. If you need help finding the right lender or telling your story the right way and you have business assets to offer as collateral, read "Matchmaking for Business Loans" and give me a call!

Tags : TARP , business loans , credit crunch , Neel Kashkari

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