Donald Trump’s empire built on debt and bankruptcy? According to reports emerging from Wall Street Journal and the financial disclosure from the US Office of Government Ethics. His liabilities amount to about $315.6 million to the US, German and other banks around the world. That is the reason, Deschutes Bank will not lend money to Trump anymore. In total, he owes about 1.8 billion USD to more than 150 institutions.
People are more amazed and even more confused about his office at the moment. The Republican has taken office amidst mixed emotions from followers, supporters, staff and the media. Let us take a look at a brief history of his business years – from 1995 to 2009; he has been the chairman of the Trump Hotels and Casino. During his 13-year reign, the casino lost about $1.1 billion and declared bankruptcy twice. Even since the genesis of the TrumpEmpire, Trump has been garnering debts by the billion. This makes Trump’s SBA and “Let’s make student loans great again” even more dubious.
The Trump Bump in student loan reforms
According to Nationaldebtrelief.com, a few of the student reforms experts expected to see at the beginning of the Trump rule
- Cutbacks on the Grad PLUS loans: undergraduate borrowing for incoming students was going to suffer a cutback to redirect more focus on the quality of a graduate’s life. If the max amount is set to $31,000, the colleges and schools are less likely to use their graduates as “cash cows.”
- Income driven payment loans: the came in during the Obama-care years. Right now, both Republicans and Democrats agree that federal financial care is too complicated for families. Repayment should rather base on income pattern of the families. Donald Trump’s plan – all borrowers need to pay at least 12.5% of their income within a 15-year repayment period. This will directly qualify them for loan forgiveness. So far, it sounds generous and practical.
- What about public service loan forgiveness?
PSLF can involve a myriad of professionals including doctors and attorneys. This becomes a little difficult since successful doctors and attorneys can apply for this program claiming to work for non-profits.
Good news for small businesses?
The changes in loan programs are not just affecting students. Businessmen are worried about the new terms and conditions that will dictate the terms of loan dispersal and repayment.
The “Trump bump” is yielding mixed and exciting responses from the small businesses and startups. According to the current President, the small business was having much trouble borrowing from the big banks and international credit unions. However, according to the Biz2Credit report from December last year, the small business loan approval at the banks jumped to an all-time high of 23.9%. The deregulation of the financial sector and improving the economy is the brighter side of the Trump term. In December alone, banks increased their loan approval rates to 49%. A record high in the last decade.
How are small businesses profiting more?
Small businesses are getting more chances of getting direct loans from credible sources. This includes business loans and consolidation loans alike. Businesses which have loans from the early 2000s are not collating multiple loans with odd payment terms to collect a bigger loan under the most recent terms. This is giving them financial freedom as they have never experienced in the last eight years. At least a part of this credit goes to the current Republican President of the USA, Donald Trump. The leading trend reports, over 1000 small business owners now apply for additional funds like consolidation loans using online platforms. Verification steps have become considerably easier, that can lead to a processing time of 24 hours, depending on the sum and type of loan.
Trump is bringing a lease of new life into the lives of small businesses. Tax reduction from a whopping 35% to a minimal 15% is now here. Sadly, over 83% of the SMBs will not qualify for this tax break since they pay their taxes based on their returns. However, this is reducing the overall repayment amount for most business loans. Even consolidation loans now qualify for this rebate. If the new tax cuts come into action, both SMBs and individual taxpayers who pay corporate taxes can directly benefit. It is quite easy actually; less money for taxes equals more money for the business.
The new financial policy by the Trump rule shows a brighter future for companies who are nose-deep in all kinds of debts. New avenues for debt consolidation are opening up that will allow companies to progress into new projects and explore new avenues for profits. Trump has fought for less government regulation on business finances, and that is going to bring a huge change in the western business front. Not only are the businesses going to enjoy lax repayment terms, taxation terms and qualification criteria for new loans, but the banks are also going to have a heyday lending out money to businesses that are being destined for profiting in the American market.
It is time for a change
The Trump Bills on finances and small businesses are going to change the face of small business, as we know it. However, the standing problem is – not all regulations that control small businesses and protect their owners are set at the federal level. The complication arises from the fact – there is not a single body at the regulatory level that can have full control over the policies. Most business owners are, however, complying with the period of deregulation. The implementation of regulation can be costly for the firm and their owners.
All in all, over a thousand small businesses are now ready to qualify for small and large company loans, consolidation loans and business credit. The introduction of relaxed qualification criteria for consolidation loans is making more companies turn to legit online lenders specializing in business consolidation loans.