Economic Recovery Needs Small Businesses to Succeed

Online, January 13, 2011 (Newswire.com) - What is "seed capital?" Seed capital is money that is invested in a project or business that is in the process of being launched, or is in the early stages of its active operation. Sometimes referred to as seed money, seed capital is used to cover all expenses associated with the project until it has begun to generate a positive revenue flow. Many times, seed capital is provided by non-traditional investors or venture capital firms. Once the business reaches profitability, investors are usually paid back both the loan amount and an agreed upon amount of interest, often as high as 30%. Any type of loan can be used as seed capital.

See if you qualify for a small business loan or personal loan as seed capital for your new business. Click here to learn more.

President Obama has asserted that the economy continues to improve and contended that his economic stimulus legislation is having a positive effect. He heaped praise on businesses, particularly small business owners who are "... the true engine of job growth in this country." Obama remained optimistic that, despite the damage done to the labor market during the recession, the economy is now poised to start adding the jobs people need. One way for new entrepreneurs to contribute to the recovery is by continuing to loosen restrictions on the credit markets. The millions on the unemployment rolls hope that Obama is right. The latest report from the Department of Labor show a stubbornly high unemployment rate of 9.7%. Analysts forecast the unemployment rate to remain high through 2010 and into mid 2011.

Small business loans may help small business owners finance new hires in anticipation of a strong economic recovery.