President Obama asked Congress to expand two lending programs for the owners of small businesses, hoping to create more jobs as part of his strategy for economic recovery. Small business has typically always been the seed for new jobs in a struggling economy.
A macroeconomic model is being used by the government as the method for calculating the number of jobs that have been saved or created through the economic stimulus package to show, for example, that when the plan was first implemented it saved or created 100 or 150,000 jobs during days one through 100 of executing the Recovery Act and the notes the estimated statistics for projecting that it will create, as an example, 600,000 more by the end of the summer.
Estimates are fairly conservative that a one percent increase in gross domestic product equals a bump to approximately one million jobs in the U.S.
According to the estimates of jobs saved or created by the ARRA of 2009 at different times are as follows: for the fourth quarter 20091.5 million jobs were saved with 2010 at 3.5 million, 2001 at 1.7 million, and 2012 at .3 million. (Source: Estimates of Job Creation from the American Recovery and Reinvestment Act of 2009 from the Executive Office of the President, Council of Economic Advisers.)
Smart small business owners are familiar with the strategy of factoring invoices to turn their accounts receivable into fast cash. It’s used as a short-term solution for some, while others have discovered factoring as a long term, or permanent, business funding tactic. Now, the Obama Administration is expanding two lending programs for the owners of small businesses, hoping to create more jobs as part of his strategy for economic recovery.
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