As the deadline for averting major government spending cuts has arrived, several reports have noted that the so-called sequestration will mean a cut in U.S. Small Business Administration loan guarantees that could help small businesses access $902 million in capital.
One bright spot in the lending picture may be that private companies appear to be better positioned to borrow than they were a year ago, which could help improve their prospects if they seek non-government loans, according to data from Sageworks Inc., a financial information company.
Sageworks this week released a monthly report on the state of privately held U.S. companies, showing that the average company’s likelihood of credit default has declined over the last year. And private companies have continued to increase sales and improve their net margins in the period ending January 2013, the report said.
“While the sequester’s impact on businesses remains to be seen, the good news is that private companies are in prettyRead More »from Private companies’ health heading into sequestration