Counseling Is Often More Valuable Than a Small-Business Loan
AMI KASSAR via The Wall Street Journal: Business Section
July 7, 2014 2:26 p.m. ET
The head of the U.S. Small Business Administration, Maria Contreras-Sweet, made a bold statement this week in an interview regarding the state of small-business lending and the SBA’s role in aiding small businesses. Ms. Contreras-Sweet said “the counseling is almost more important than the lending.”What she is referring to is something I encounter on a regular basis as well. Small-business owners often believe that loans are a remedy for nearly all business problems. However, a loan isn’t always the best answer. In fact, it can oftentimes worsen the problems small-business owners are facing by putting them even deeper into debt when that may be unnecessary.