It’s no secret that businesses both large and small depend on credit to survive. A big part of our current financial crisis is that credit lines have been so severely restricted that many companies are having to lay off employees, cut back on production and are even facing bankruptcy because of the credit crunch. Elastic emergency loans are one way businesses are finding the credit they need to thrive in today’s tough business climate.

In late October, the Federal Government introduced the Small Business Emergency Loan Relief Act to tackle the problem of credit for small businesses head-on. This was a very encouraging move on the government’s part and could herald the beginning of an economic turnaround for our country.

Basically, the Loan Relief Act has raised the ceiling level of several types of business loans. These changes will give small businesses a substantial infusion of cash without the backlash effect of crippling interest rates businesses can scarcely afford in our struggling economy.

Take the ARC loan, for example. The Small Business Emergency Loan Relief Act allows small businesses that qualify to borrow up to $50,000 to provide them with an immediate cash injection to relieve principal and interest payments on existing loans, allowing them to focus their cash flow towards their core business activities instead of servicing loans.

The Loan Relief Act also has a provision that allows businesses to use 504 loan guarantees to refinance existing business debt. This is another way the Act helps small businesses address their cash flow difficulties.

If you are a small business owner or a start-up business, educate yourself fully about the Small Business Emergency Loan Relief Act and other emergency loans that you can avail yourself of should you need to. These measures can make all the difference to your small business success.