With the continuing turmoil in our financial markets, we must address its effect on the retirement security of American families. According to the Congressional Budget Office, American workers have lost as much as $2 trillion in retirement savings over the last year. Americans rightly are worried that their savings will not be there to meet their needs as they hoped. We have also seen leading companies freeze or end their defined contribution, 401(k), plans. Further, even some defined benefit plans, which provide retirees with a guaranteed pension check, may be in doubt.
Recently, the Small Business Administration announced it is allowing banks to make 7(a) loans at interest rates based on the London interbank offered rate, which is lower than the standard U.S. prime rate. Many New Jersey banks offer the lower rate, and small businesses in the region will now be able to benefit. All businesses that are considered for financing under SBA’s 7(a) loan program must meet SBA size standards, be for-profit, not already have the internal resources (business or personal) to provide the financing, and be able to demonstrate repayment.
Member of Congress