Stimulus spending resources for small businesses.

The credit crunch's effect on the economy put financial pressure on some small business owners, entrepreneurs, and their terminated employees, many of whom want to make a fresh start. In the last decade, small businesses generated about 70% of new jobs. Consequently, the success of small businesses is believed to have an impact on America's economic recovery.

To help stimulate the economy, save jobs, and create new jobs, President Obama signed into law the American Recovery and Reinvestment Act of 2009. Called the Stimulus Package, the law authorized $787 billion for government spending.

Although opinions vary on the success of stimulus spending, evidence of the bill's benefit to small businesses came in the form of a doubling of the Small Business Administration's (SBA's) budget. Consequently, the SBA increased loan guarantees up to 90% in its 7(a) loan program and temporarily eliminated loan fees for SBA lenders and borrowers. The SBA also launched additional programs to help small businesses in difficulty. The SBA provides several financial assistance programs for small businesses including 7(a), 504, and disaster assistance loans. New programs include the following two programs:

* SBA ARC Loan Program. The SBA's America's Recovery Capital (ARC) Loan Program was created to help small businesses that are having trouble meeting expenses. This program can provide up to &35,000 in short-term relief for viable small businesses facing immediate financial hardship. Each small business is limited to one ARC loan.

* Patriot Express Pilot Loan. The SBA's Patriot Express Pilot Loan was created for veterans and members of the military community wanting to establish or expand small businesses. Eligible military community members include veterans, service-disabled veterans, active duty service members eligible for the military's Transition Assistance Program, reservists and National Guard members, the...