financing | The Contracting Education Academy

When the shutdown ends, contractors will be busy.

When the economy does begin to recover from our nationwide lockdown, one certainty is that it will not be as simple as “turning the lights back on.”

Companies may have a long road back to full strength as they go through the process of restoring their workforces, rebuilding supply chains and planning for growth in a new, unfamiliar economy.

One certainty, however, is that government contractors will be in high demand as agencies face a backlog of project work as well as new initiatives grown out of coronavirus recovery plans. Taking the right steps now will be essential to aligning these resources with expected need.

So why will government contractors face a surge in demand when COVID-19 restrictions lift? One reason is that many projects that were underway in the spring, particularly construction projects, will once again come back online after being placed on hold due to social distancing guidelines. Construction on roads, bridges and highways is expected to peak as state and federal agencies race to catch up on work planned and postponed for the spring and summer periods.

Keep reading this article at: https://federalnewsnetwork.com/commentary/2020/07/government-contractors-and-financing-a-post-coronavirus-reboot-of-the-economy/

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized. Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

The mission of the U.S. Small Business Administration (SBA) is to provide lending to “Mom and Pop” businesses on Main Street.

sba-loan-debt — **A new study published by Forbes magazine reports on 160,000 failed SBA loans that have been charged-off since 2000 to the tune of $17.5 billion.**

The recipients are supposed to be entrepreneurs with great ideas who just can’t find financing in the private marketplace. The public image is one of apple pie, baseball and the American Dream.

But the reality is that the SBA is economically costly for taxpayers, and it creates a painful human cost for the workers it dislocates.

In 2014, we documented at Forbes, SBA lending to the wealthy lifestyle: Lamborghini auto dealerships, Rolex jewelers, world-class golf courses, private country clubs and even $142 million lent to businesses in ZIP code 90210, Beverly Hills, CA.

Now, we’ve published our OpenTheBooks Snapshot Oversight Report – Truth in Lending: The U.S. Small Business Administration’s $24.2 Billion Bad Loan Portfolio. Analyzing the SBA portfolio since 2000, we discovered 160,000 failed loans were charged-off to the tune of $17.5 billion. In other words, taxpayers absorbed those costs. Meanwhile, 1.4 million workers were dislocated when they lost their jobs within these failed companies.

Keep reading this article at: http://www.forbes.com/sites/adamandrzejewski/2016/09/07/picking-losers-over-winners-at-the-u-s-small-business-administration

The Small Business Administration picks losers over winners

The mission of the U.S. Small Business Administration (SBA) is to provide lending to “Mom and Pop” businesses on Main Street.

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