Business

Debt ceiling debate and its results – How much is Hawaii affected?

The debt ceiling debate is at its boiling point even after the bill to increase the debt ceiling had been passed and necessary steps had been taken. This is majorly because it is the foremost projected issue in the electoral campaign of 2012 elections for both the Republican and the Democrats. The senators from Hawaii, Daniel Inouye and Daniel Akaka have both voted in favor of raising the debt ceiling during the last voting conducted for raising the debt limit before 2nd August 2011, which was the deadline set by the US Treasury. According to President Barack Obama, the emergency bill that the Congress had passed was to prevent a default on the debts incurred by the government and the first in a series of steps to ensure that the country lives within its means. Senator Inouye was quoted saying that his action was necessary at this point of economic crisis in the country.

Inouye was also quoted saying that the $2.1 trillion cut over the next 10 years will have a very deep and significant effect on the government services. The proposal that has been passed contains no new sources of revenue. The senior senator from Hawaii was also seen to be quite displeased with the Republicans. He said that they were negotiating with such people who would rather observe the country defaulting before they backed off on their campaign promises. Not raising the debt ceiling would mean that the US would convey to the world at large that they were not meeting their financial obligations. This would in turn affect not only the markets of the country but around the whole world.

However, it is to be kept in mind that the decision to raise the federal debt ceiling comes at a cost. The compromise involved to raise the debt ceiling is likely to inflict considerable amount of fiscal pain on many states, including Hawaii, which are struggling to come out of the effects of recession. The federal stimulus spending will now be cut off to a large amount. The agreement that that President Barack Obama and Republicans came to in order to avoid the first financial default by raising the debt ceiling, required a slashing of $2 trillion from the spending plans of the federal government over the next decade. The enactment of this agreement will mean that level of domestic spending will be the lowest since President Dwight Eisenhower more than half a century ago.

The details of the spending cuts of the states were undisclosed and the criteria on which the spending cuts will be implemented were also unclear. However, the lawmakers from both the parties have come to a common consensus that the requirement for cutting or imposing caps on discretionary spending over the next decade was important. This signifies quite a wide ranging cut including cuts in the aid to states provided by the federal government which includes Head Start school readiness program, Meals on Wheels and worker training initiatives, funding for transit agencies and education grants for disabled children.

The governors, state lawmakers and state agency heads were quite concerned that the Congress was likely to make deep reductions or cuts that would change the amount of federal aid towards health services for the economically deficient most notably through Medicaid. This can shift more of the costs on the shoulder of the states which are already facing troubles balancing their own budgets. Hawaii is no exception to this. Thus Hawaii will suffer along with other states for this situation that US is facing .


Loan Options for a Small Business Owner

Capital is the lifeblood of every small business. However, most small business owners do not have the funds necessary to start or expand their company. The majority of all small business owners will have to get a business loan or secure financing through alternative means to start or expand.

Business Bank Loans

In order to get a business bank loan, certain criteria must be met. The business owner will have to have good personal credit and good business credit, show the ability to repay the loan and sustainability of the business. The owner will also need a business plan, projected earnings and may need to show account receivables as well. It is becoming increasingly difficult to be approved for a business loan through a bank or traditional lending institute.

SBA Loans

An SBA loan is not actually a loan itself, as in it does not lend money to the borrower. Rather, an SBA, or Small Business Administration, loan is one backed or guaranteed in whole or in part by the federal government. Recently, SBA backed loans have increased to five hundred thousand, have as low as eight percent interest rates and include coverage for special circumstances in order to help a small business procure the loan they need. SBA loans are designed to assist small businesses who are experiencing financial hardships or are just starting out.

USDA Business Grants and Loans

The USDA has many lending resources and grant funding capabilities in order to promote business opportunities and growth. Many people think the United States Department of Agriculture only helps those in the agricultural field, but they also assist businesses in many aspects of rural America. There are many specialized loan and grant programs that can help small emerging businesses.

Merchant Cash Advance

If you are an established business, but fail to meet the criteria needed to get a business loan through a bank or other lender, you may still qualify to get a loan through a merchant cash advance. A business cash advance is repaid through a predetermined percentage of each future credit or debit card transaction. Rather than looking at personal or business credit scores, a lending institute will look at the projected rate of credit card transactions in order to determine loan amount and the percent deducted from each transaction. Most merchant cash advances have no set time limits for when the loan must be repaid or a monthly payment. The majority of cash advances for small businesses have flexible terms and manageable repayment requirements.

With any loan, it is essential for the small business owner to sit down and figure out why he or she needs a loan, what the money will be used for and determine a plan to repay the loan.


The Practice of Social Networking for creating business

With the advent of the internet there has been a tremendous rise in the social networking all over the world. The numbers of the users who are making use of these social networking sites too are increasing day by day. Almost all types of people irrespective of their interests, backgrounds and different purposes are heading towards the social networking sites for searching the people who may be interested in making the friends. Every day, there are millions of members getting associated with these sites for taking advantage in their respective fields. Often the question can come in the minds of the people that how and in what way the social networking sites can make the best business profits so that it will be observed by a large number of groups. If someone is trying to market his or her website then he must be familiar with the tapping of the social media networks. It can really boost up the efforts which can do wonders for the advertising of their website.

A large number of people have started to make use of the social media for propagating business. The social networks can act as a big medium through which the people associated with them can fully capitalize on the present situations. The limits which people have made on the websites have been met. So as a result of this the scenario today is that the consumers want to see their businesses expanding and growing on the networking sites and the social media. The business owner of any product is doing well in his business but if he is not keeping with the social networking sites like the Twitter, Facebook then he is lagging behind with the rest of the world and people might not be interested in your company. Also, keeping up with the Social networking sites can be good for the business prospects too. The good thing is that you will not be aware of this.

This medium can surely turn the fortune for you and flourish the business. There are many prominent social media sites that can really boost up the sales figures. The problem which a lot of users and consumers can face is that in choosing the suitable sites which will really help in marketing and making the relations better. Additionally people have to choose the website which might be beneficial for you.


Copyright © 1996-2010 Open Article and news directory. All rights reserved.
iDream theme by Templates Next | Powered by WordPress