Business loans up 57 percent in California

L ooking for money to start a corporation? Entrepreneurs in need of finances for startups may be well-advised to undergo business incorporation in California. According to report from the Press-Enterprise, the state’s businesses are reaping the benefits of American Recovery and Reinvestment Act-supported Small Business Administration loans.

The program was recently extended to May 31, and the SBA has used funds received from the act to support $25 billion in small business loans. The source says companies in California have seen a 57 percent increase in loans over the first six months of this fiscal year. The amount of loans totaled $151.8 million compared to $79.6 million last fiscal year.

A number of entrepreneurs have already started boosting business endeavors in light of the extension of these loans through May. "We’ve seen a spike in activity by more than 20 percent in the last 60 days because of businesses taking advantage of this confluence of events," Mike Kendall, vice president of Newport Beach-based Turner Development, told the source.

If the potential to gain capital funds is not enough for some entrepreneurs to consider forming a company in California, they may be interested to learn that Santa Clara University will be offering a free entrepreneurship program to individuals with promising business plans. Seattle PI says the program will begin in June 2010.