Week 1: SBA 2009 Recovery Act: What's in the Stimulus Package for Nail Salons?

We’re just a little over halfway through 2009, a year that has rocked the economy of every major nation in the world. By all accounts, it’s been a tough year, whether you run a business or you’re nervous about job stability. We feel for you: The publishing business has been turned on its head.

But there’s some good news: Early reports are showing that the recession may be easing up, and business on many fronts is beginning to stabilize. We’re a far cry away from the economic certainty of the pre-recession days, but it’s a starting point.

As we come out of the recession and people start feeling a little better about the economy, it’s natural to take small steps (like getting a manicure before buying a new car, for example), and after the dreariness of the economic woes, salons are well poised for early recovery. What is a better pick-me-up than a salon visit?

Once a week over the course of the next 22 weeks, NAILS’ 2010 Project is going to bring you easy-to-implement, real-life tips and tricks to help get your salon business back on track (or continue to grow) by January 2010. It’s time we all take a collective deep breath and assess how OUR business is and how we can give ourselves a boost.

Earlier this year, The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law by President Obama. It has the potential to have a significant impact on small businesses (like salons) by providing tax incentives and financing opportunities that will help small business owners create jobs. The idea is to make it easier for small businesses to get loans.

The bill provides $730 million to the Small Business Administration (SBA). This includes money dedicated to:

-- temporarily eliminating fees on SBA-backed loans

-- help small businesses meet existing debt payments

 -- expanding SBA’s Microloan program

One aspect of the Recovery Act that stands out for salon owners is ARC (America’s Recovery Capital Loan Program), which can provide “up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability.”

According to the SBA, “The best candidates for ARC loans are small businesses that in the past were profitable but are currently struggling, yet have been making loan payments or are just beginning to miss loan payments due to financial hardship.” As I understand it, salons are perfect candidates for these loan options.

Click here to read more about ARC loans.

Click here to go to the SBA Recovery Information Center where you’ll find a wealth of information, including complete details of the Recovery Act and ARC loans, FAQ, podcasts, and information sheets in English and Spanish.

— Hannah Lee

Coming Next Week: Guerilla Marketing: Thinking Outside Your Salon