Giant corporations dominate the headlines, but small businesses are the backbone of the US economy. Over 70% of the new jobs in this country are created by small businesses, and there are over 26 million such businesses in the US at any given time. With the economy dependent on small businesses to find a way to survive during this recession, help may finally be on the way for small business owners.

On Wednesday, Karen Gordon Mills was confirmed in a Senate hearing to be the new head of the Small Business Administration. Slow sales, frozen credit markets, and massive job losses have taken a toll on small businesses and without someone at the top of the agency, there has been little help or hope for business owners. Mills acknowledged that there are serious problems for small businesses that need to be fixed, but wasn’t specific in how exactly the problems would be addressed.

One of the first tasks of the Small Business Administration will be to go about allocating the funds set aside for them in recent Stimulus Package legislation. Some changes have already been put in place, including fee waivers on small business loan applications for small businesses. But business owners are frustrated that many other recently proposed changes that would make it easier for them to borrow money are still not in place.

The Small Business Administration has been widely criticized in the past after problems with fraud and a lack of oversight led to what many have considered an uneven playing field for small businesses. The Administration has its work cut out for it to regain the trust of both lawmakers and small business owners, who need help now more than ever.

Mills promised that other important issues, including a lack of health care for small business owners and employees, will be dealt with as quickly and efficiently as possible. She also indicated that additional training and education for small business owners will be an essential part of strengthening America’s core once again.

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Tags: lending, small businesses, stimulus

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