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Wed, Feb. 27 2013 07:31 PM EDT

The Upside of the Sequester: A Boost to Alternative Lending for Small Businesses

By James Walter and Corey Ross
With the sequester days away, there is much talk about how government spending cuts will affect the economy. One area of the economy that would be affected by the sequester is commercial lending. Estimated cuts of $902 million to the Small Business Administration loan program would impact thousands of small businesses. Additionally, decreased government spending could lower gross domestic product by $215 billion, shrinking lending levels to those near or below 2008 that may initiate a lending holiday later this year, limiting any hopes for economic recovery. (A link to this page will be included in your message. )

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