Friday, August 6, 2010

The SBA and ending the recession one employee at a time

Another 131,000 people lost their jobs in July according to the Department of Labor.

The Census Bureau said it let go about 144,000 of the people conducting the decennial population count from mid-June to mid-July. It still had about 200,000 temporary workers on staff as of July 17, indicating additional cuts to come that will keep distorting the payroll figures for months.

For that reason, economists say private payrolls will be a better gauge of the state of the labor market for much of 2010. Private payrolls that exclude government agencies rose by 71,000 last month, after a June gain of 31,000. Total employment fell a revised 221,000 in June.

According to Intuit, small businesses hired about 40,000 people last month. That means more jobs are being generating by small business than any other part of the economy.

That trend of small business hiring however has recently slowed. This slowdown coincides with the expiration of SBA loan Recovery ACT stimulus incentives such as an increased guarantee for lenders participating in the SBA 7(a) loan program. SBA 7(a) lending volume has also slowed since the expiration.

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