What I find more surprising is that a small business owner would want to borrow money directly from the government. After seeing the strings that were attached to the government loans made to GM and the banks and considering how poorly most government run programs are managed. A small business owner generally is going to borrow money to improve, grow and or get through a tough time. Would you really want to take that loan if it meant you couldn’t hire the best person for the job or you were forced do business with customers who probably won’t/can’t pay? Borrowing from a bank generally means you lose everything if you fail but at least they aren’t going to make it more difficult for you to succeed.

On that note, small businesses would be right in feeling that they don’t matter to the government because the government/politicians will gain very little by “helping” us “little guys.” Not enough of the 29.6 million SBs will agree on the direction they have taken to really support them. About the only way it would benefit them to help us, would be to create an entitlement program like SS, welfare, medicare, etc. This would create a dependance on the program and support for the political advocates of the program. Which begs the question, “Where is it?” The democrat party tends to support this kind of programs and they’ve had total control for the past year. Do they not care about SBs? I don’t believe it’s an issue of care as much as it is of power. They gain more by saving the “big boys” who’s collapse would supposedly ruin our country. Not only do they gain politically as the “hero” but they also gain more influential control in the private sector.

As a small business owner with a lot of friends who also own small businesses, I get tired of hearing all the news stories about how small business lending is going to get a shot in the arm from President Obama’s programs or any other source in the foreseeable future. Yesterday I listened to a speaker from one of the large banks talk about how many loans the bank was making, doing its share to get the country moving again. All the banks are simply not making business loans unless they are absolutely gold-plated. Period. This isn’t because they don’t want to make loans; it’s because they’re being criticized by examiners.

The regulators have made it clear to banks that they will be criticized for any loan where the borrower takes out any cash, regardless of the underlying fundamentals or collateral. This is nonsensical.

I understand that real estate is depressed, and that values are uncertain, and that tenants are moving, and all the other fundamentals.

The answer is simple: The regulators need to relax—not on every loan, but use some common sense!

I feel for all the small businesses in America that are crippled. They dont understand why their debt free building isnt worth anything for collateral on a loan, or why their receivables which have deteriorated only slightly are now not worth anything as collateral.

Here’s the simple truth from one of the “little guys” in a small business who sees the misery here in the street, and just can’t relate to our government’s plan to put more money in the system. There is plenty of money out there; someone just needs to stop sitting on it, after the regulators tell them it’s ok to lend some with solid underwriting policies.

This story has been truncated, see the whole story at: http://www.mrmissionpossible.com/blog/auto-salvage-consulting/obamas-30-billion-small-business-plan-more-money-isnt-needed/

Ron Sturgeon
5940 Eden
Ft. Worth TX 76117