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CNN Live At Daybreak
SBA Halts Loan Program, Ran Out of Money
Aired January 08, 2004 - 06:48 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' now. Thinking of starting a small business, don't expect the government to give you a loan.
Carrie Lee has more live from the Nasdaq market site.
Good morning.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
Sad news here for small business owners. Published Reports saying that the Small Business Administration is saying that it has suspended its main $9.4 billion loan program because it has run out of money. Now the Loan Guarantee Program benefits business owners who typically don't qualify for traditional bank loans. Yesterday, major lenders say that the program suspension, even though it's temporary, is a sharp blow to these business owners.
Now some members of Congress say the agency underestimated demand. The agency says Congress failed to approve its budget. But as these two play the blame game, small business owners are getting caught in the middle. And this is really an unfortunate time for this to be happening. A lot of small companies rely on the SBA program that are startups. And startups typically, in an economic upturn, are the ones who hire a lot of workers. So now that we're in a recovery mode, Carol, a very tough time for a lot of people when these companies can't get the money.
COSTELLO: Tell us some better news about the futures today.
LEE: Well, I can tell you futures are looking pretty flat right now. The Nasdaq, though, saw a very nice session yesterday, finishing at a 2.5-year high, closing up 20 points to 2077. A lot of investors today certainly waiting to hear what our nation's retailers have to say about December or holiday season sales. So people waiting on the sidelines for that.
Two stocks to watch today, Procter & Gamble upping profit guidance for the recent quarter. And Alcoa, Carol, officially kicking off the profit reporting season for Q4 after the bell tonight.
Back to you.
COSTELLO: All right. Thank you, Carrie.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired January 8, 2004 - 06:48 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' now. Thinking of starting a small business, don't expect the government to give you a loan.
Carrie Lee has more live from the Nasdaq market site.
Good morning.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
Sad news here for small business owners. Published Reports saying that the Small Business Administration is saying that it has suspended its main $9.4 billion loan program because it has run out of money. Now the Loan Guarantee Program benefits business owners who typically don't qualify for traditional bank loans. Yesterday, major lenders say that the program suspension, even though it's temporary, is a sharp blow to these business owners.
Now some members of Congress say the agency underestimated demand. The agency says Congress failed to approve its budget. But as these two play the blame game, small business owners are getting caught in the middle. And this is really an unfortunate time for this to be happening. A lot of small companies rely on the SBA program that are startups. And startups typically, in an economic upturn, are the ones who hire a lot of workers. So now that we're in a recovery mode, Carol, a very tough time for a lot of people when these companies can't get the money.
COSTELLO: Tell us some better news about the futures today.
LEE: Well, I can tell you futures are looking pretty flat right now. The Nasdaq, though, saw a very nice session yesterday, finishing at a 2.5-year high, closing up 20 points to 2077. A lot of investors today certainly waiting to hear what our nation's retailers have to say about December or holiday season sales. So people waiting on the sidelines for that.
Two stocks to watch today, Procter & Gamble upping profit guidance for the recent quarter. And Alcoa, Carol, officially kicking off the profit reporting season for Q4 after the bell tonight.
Back to you.
COSTELLO: All right. Thank you, Carrie.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
