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September 2010

Commentary

Loans To Small Businesses Are Key To Recovery

Publication Date: 
March 2009

By Tom Donohue, President and CEO, U.S. Chamber of Commerce
March 24, 2009

Businesses of all sizes have been battered by the recession, but small businesses—the engines of economic growth—have been especially hard hit. They've faced a double whammy—a huge reduction in business due to the recession and severely restricted access to credit due to the banking crisis.

Affordable and abundant credit is the lifeblood of all businesses, but credit is especially important to small businesses that have fewer financing options than larger companies. That's why the U.S. Chamber has made helping small businesses obtain credit and stay afloat during these difficult times a top priority. Last week, the Obama administration proved it was listening and took a major step in the right direction.
 
The White House announced plans to reduce the Small Business Administration's (SBA's) 7(a) and 504 lender and user fees, which will incentivize banks to lend and make funds more affordable for small businesses  to borrow. The administration  also called for an increase in  the government-guaranteed percentage of the SBA 7(a) loans and changes that would allow banks to more easily sell the guaranteed portion of the SBA 7(a) and 504 loans on the secondary markets. Finally, banks will be required to meet new reporting requirements to help monitor lending to small businesses.

Along with a provision in the stimulus bill that will allow small businesses to carry back their losses over the last five tax years (effectively, a tax refund), this proposal amounts to a mini-stimulus package for small business owners.

While we applaud the administration's plan to get credit back in the hands of small businesses, it's also important that it not implement policies that will hurt them. Raising taxes would be a huge mistake. The proposed increase of marginal tax rates for those earning more than $250,000 a year would adversely impact many small firms, as $2 out of every $3 dollars in small business profits is taxed at the individual household level.

Saddling small businesses with an expensive health care mandate and more burdensome workplace regulations will only delay economic recovery and undermine our nation's long-term growth.

Small businesses need credit to meet payroll, purchase supplies, hire workers, and—in a deep recession—to simply keep the lights on. Don't forget, small businesses employ approximately half of all private sector workers and generate 60% to 80% of net new job growth. Investing in these companies is a down payment toward economic recovery and a brighter future for America.

Comments

Jreddien 10/12/2009 3:10:27 AM

What they need to do is recognize that small business is the small business. Employers with under 50 employees. Not as it is the under 599 employees.
thanks
John (Atlanta, GA)
Darrell G Holmes 10/12/2009 3:10:27 AM

Some one should take a good look at this SBA loan promise. Cutting fees, 90% loan guaranties etc.Read Crain's Business newspaper and the WallStreet journal. The SBA lending banks are reduceing SBA loans because they claim they can't make any money on them. The few who will stay in the game will raise the intrest rates on these loans. The goverment should make these loans directly to the small business. Enough of the run around and excuses from the banks!! (West Chicago, Illinois)
Greg Harkins 10/12/2009 3:10:27 AM

I agree, the SBA should be the ones deciding on who gets the loans not the banks. The requirements at some banks are so over the top that only a very "select" would even qualify, and then they want you to jump though to many hoops. It seems that they just dint want the business. (St. Albans, WV)
Dean 10/12/2009 3:10:27 AM

Forget the loans, the bailout money should have been given to the small business. It's the large gready companies that have put us in this position in the first place. Why reward the very people who got us in this mess in the first place. Think about it! if you reward a dog for biting you, he's sure to do it again. (Aurora, IL)
Griff Bell 10/12/2009 3:10:27 AM

As a "Small Business" owner with our main office in Colorado and a branch in western PA, we have been hit EXTREMELY hard by this economic slow down. As an independant dealer of used earthmoving construction equipment, we have seen a decline of as much as 90% in sales and at the same time seen the value of our inventory drop by as much as 70% creating a devastating impact to our viability as a company. With these kinds of dramatic, overnight declines in both sales and book values thru no fault of our own, it has made it almost impossible to remain in business. We can no longer be "In Compliance" with our banker so new loans are impossible to get and we are experiencing the same effects as a bank with "Toxic" assets except we aren't getting the "Stimulous Money" or help from the FEDS that the banks are getting. Instead, the very same people who created this whole mess are now breathing down our necks like vultures waiting to reposses everything we have spent our lives building including our homes and personnal assets forcing yet another "Small Business" OUT of BUSINESS and more people onto The Government Dole.
Feels pretty "Stimulating" to me. (Littleton, Colorado)
irma gonzalez 10/12/2009 3:10:27 AM

when will small business loans be available ? I am struggling to get my counseling business operating (el paso, texas)
irma gonzalez 10/12/2009 3:10:27 AM

when will small business loans be available ? I am struggling to get my counseling business operating (el paso, texas)
Bruce M Nelson 10/12/2009 3:10:27 AM

Small businesses don't need so-called stimulus packages or loans; they need customers. Nothing the Obama administration has done will help my business. We need lower taxes not redistribution. The US Chamber needs a new president who understands conservative economic principles. (Eldon, Missouri)
irma gonzalez 10/12/2009 3:10:28 AM

when will small business loans be available ? I am struggling to get my counseling business operating (el paso, texas)
Beth Forbess 10/12/2009 3:10:28 AM

Forget loans. Our welding job shop has plenty of debt right now. We need our commercial customers to feel free to build and our ag customers to use their financial resources for repair work. (Kearney, NE)
Ron 10/12/2009 3:10:28 AM

I am pleased to see the Chamber working productively with the new administration. That doesn't mean you or we agree with everything they come up with. But it is more beneficial if you represent our interests and look for positive solutions, rather then taking a hard partisan position and fighting them on every issue. Thank you. (Lewes, Delaware)
David S. 10/12/2009 3:10:28 AM

We're trying to open our 3rd and 4th QSR. We had been promised loans, but that bank went belly-up. Sure would like to know where to find those affordable and abundant loans. Also, most small businesses don't fall into the 504 category. Also, I read the desciption of the 7a progam which states that this loan is mostly for businesses without available funding from other sources. All the banks we have talked with want large sums of cash for deposit in their banks before they will even talk to you. That's a disqualifier for a 7a loan. Also, many want real property for collateral. Most small businesses do build outs in strip malls - they don't have real property for collateral. One bank said they would do a loan but for only 60%.
Doesn't help me there. They wanted us to keep the other 40% on deposit. DOH! (Orlando, FL)
Stephanie 10/12/2009 3:10:28 AM

Our small business has been around and successful for 12 years. We've just been turned down for an SBA loan, and now it looks like we'll be turned down for a Micro-loan as well. We're struggling because of credit card interest rates that have tripled over the past year, and lower sales due to companies laying people off. Mr. Obama can make all the promises he wants, but the banks are not lending money to small business. That's reality. (Missouri)
Margaret 10/12/2009 3:10:28 AM

You asked in your quick poll "Which one of the following provisions in the economic stimulus package do you think will have the greatest impact?" You should have included "NONE OF THE ABOVE". You poll shows that over 72% of small businesses are not expanding or modernizing. Well, that negates the first 5 items in your list. There is unemployment of more than 10% and the rest are struggling to pay credit card debt and demands for higher utility costs (don't forget the demands by utilities for more deposits on top of what they asked for when you opened your account) and higher food costs. That negates item 6 the tax credit. And the credit for first time homebuyers - They can't come up with the 20% down payment. The last items are just going to take too long to get into the economy and will help only selected few businesses. (Windermere, FL)
Debra Young 10/12/2009 3:10:28 AM

Why in the world would we want a SBA Loan?? Our business has been highly successful without loans, expecially getting money from the government. The retail business needs the consumer back to spending some of their hard earned money so that we can ALL stay in business. We don't want a government handout (LOAN) -- get the cash back to the folks that deserve it and get this economy back on track. It makes me sick that I am looking at laying off good people when I thought we would be up another 20 percent from our prior year (like we have done for the past 4 years). Now my business is off by more than 50 percent! Small business USA is not 100's of employees in a firm. It is 10's in a firm. Has ANYONE in this Administration EVER owned a business? (Bozeman, MT)
Ric Williams 10/12/2009 3:10:28 AM

I'm a small business owner in southern california. I have applied for several business loans. I have been denied by every bank that i applied. Citi Bank, Banco Pupular, Bank of America, Wachovia, Wamu/Chase and Union Bank of California etc. All these banks are a joke. Why did take the stimulous money? They are not helping anyone! (Rancho Cucamonga, CA)
R. Brooks II 10/12/2009 3:10:28 AM

Loans are the problem. All aspects of our society, on a macro-level, use loans excessively, willfully giving the creditors too much power over our society. As a whole, we need to get back to the days of low risk growth, which means we only grow as much as our profits and very conservative loans allow us to. That way if our growth plans end up falling flat due to market miscalculations or circumstances outside of our control, the credit monster can quickly be shut up and kicked out, while we regroup instead of us getting hounded multiple times per day for money our businesses are having trouble generating.

The way to help small business is to cultivate a strong and just free market economy. That means, no business is too large or small to fail if they fail to plan for market gyrations. Let them sink and either reemerge stronger or disappear. Strong businesses/banks will take over and fill in gaps left by the ones that fall.

Consumers should be allowed to fail as well so that they can learn valuable lessons for the future. But Federal, State and local governments should have resources to help them survive, learn and regroup from their hardships if they exhibit the fortitude to do so. Going through financial hardship should not emaciate any human being's dignity and it should never fetter them permanently. The lessons learned from the hardships will make people better contributors in society without putting themselves in harms way in the future.

www.myspace.com/brooksdevelopmentintl (Washington, DC)
Andrew Sellers 10/12/2009 3:10:28 AM

If innovation is the lifeblood of economic growth, then perhaps an innovation-loan-program would be helpful. Multiple suppliers and customers of mine have ideas, prototypes, process improvements, etc. that they have would love to fund and implement.

It would seem that the new value creation that comes along with innovation would provide an excellent return on any money directed to small businesses in order to fund innovation.

Talk about new job creation! Provide enough small businesses innovation loans equal to 10% of their gross revenue, and accrue the interest on the loan at prime + 0% for three years before it amortizes regularly and requires regular principal and interest payments.

Then watch what happens.... (Apopka, FL)
Debbie Price 10/12/2009 3:10:28 AM

After 9 months of negotiation, I was finally able to buy out my business partner. Part of the buy out included refinancing a line of credit we had. I went to three major banks and was told by all of them that 3-6 months ago, based on my great personal credit score and the 4 year old business great credit score I could have had any dollar amount I wanted. However in January not only would they not give me what I needed (I asked for $50,000 and was offered $10,000)but offered ridiculous options. Finally a major bank came through for me at a lesser amount but one I could live with and an interest rate of prime + 3%. I wrote my congressman to tell him of my woes because I was afraid I would lose my business and I got no response from him. So are they really listening to actual small business problems with the credit crunch?? (Knoxville, Tennessee)
Jonathon 10/12/2009 3:10:28 AM

I agree with many of the other small businessowners who have already responded to this article. Most of us don't NEED or WANT want to borrow money from the Federal Government or anyone else for that matter. We already have enough debt that we are servicing. What we need is TAX RELIEF! We need things reduced like Payroll Taxes, Worker's Compensation, and Corporate Income Tax, and ultimately Capital Gains. Instead, Obama wants to INCREASE our taxes making it even harder for us to pay back the loans we already have. Doesn't anyone at the Chamber or the Whitehouse have a calculator that works? Once again, the Chamber of Commerce doesn't "get it" anymore than Obama does. (Phoenix, AZ)
Lawrence J. Murphy 10/12/2009 3:10:28 AM

I agree however after we (taxpayers) gave Chase bank $29B I received a form letter, along with other small businesses I'm sure, notifying me that my access to funds fron the credit line I have had for years has been terminbated. And I doubt that giving them more money will get them to reinstate my access. (Stratford, Connecticut)
Colleen 10/12/2009 3:10:28 AM

If, the SBA is going to loan money at this time, is it going to take a year for me to receive the $$$. It took a friend of mine that much time and that certainly won't help during this recession.
We need it NOW!!! (Mandeville, LA)
Sandy 10/12/2009 3:10:28 AM

As a small business we all depend on our personal credit and credit cards. With the current conditions all our credit cards have been reduced or closed if we did not owe on them and as we are paying them off or lowering them the BANK are reducing the lines even further. Not only are they hurting the small business but they are killing our personal credit and ability to get any other loans in the future. I guess this is what we get for giving them out tax dollars to stay in business. They are in return going to put us out of business. (Denver , CO )
Nancy 10/12/2009 3:10:28 AM

I don't need credit. I need orders for my manufacturing plant and job contracts for the construction division. (Coachella, CA)
PK 10/12/2009 3:10:28 AM

I'm curious if those business people who are conservative, don't borrow a lot and survive this mess will be considered mentors, suckers, or even worse, corrupt because they prospered when others failed? (I use prospered in a very loose way) I think this question will define the future of our country. (Dallas, TX)
Benny 10/12/2009 3:10:28 AM

If the US had universal health care you'd see a lot more small entrepreneurs start up businesses. And if we had universal health care, I'd be able to hire talent as needed instead of worrying about their family's health insurance ...

Point is, universal health care will have tremendous benefits for small businesses. It's the insurance companies that are really afraid of it. Frankly, I expect the chamber to stand for my interests and not those of giant insurance companies. (Lake Monroe, FL)
Carlos Lopez 10/12/2009 3:10:28 AM

We are a small business. We had an interest only line of credit with WAMU, we borrowed $277,000 in June of 2008 to buy equipment, hire professional staff and provide working capital to expand our business. WAMU just informed us they decided to amortize the loan over 5 years. Our payments are current and we have never been late. This was not in our budget. We were planning on interest only payments for 5 years and then either pay the loan off or amortize it and pay for it with new revenues. We need some help! Is there going to be a government bailout for us? (Salinas, Californi)
Ric Williams 10/12/2009 3:10:28 AM

I'm small businees owner in southern california. I applied for several business loans and have been denied everytime. These banks are a joke. Citi Bank, Banco Popular, Bank Of America, Wachovia, Wamu/Chase and Union Bank Of California etc. It has nothing to do with my credit. They are stating that my industry which is automotive services is a risk market. What is the purpose for the bank to be getting the stimulous money? They are not helping anyone! (Rancho Cucamonga, CA)
Scott Thomas 10/12/2009 3:10:28 AM

The one thing I like about these comments is you get to see a lot of different viewpoints. It is interesting how many different kinds of problems eeryone is facing. The #1 problem really is the mega corperations screwing the american people out of jobs buy buying inferior quality products from China and other low wage countries in order for the execs and stockholders to get rich while the workers lose their jobs. I am all for a global economy as there would be a lot less hate and anger in the world if more people had a good job making them a decent living anywhere you lived, but the greedy execs make deals with these low wage companies to make products at a price so cheap and so poorly made that American companies who still have integrity and want to build a quality product simply can not compete. And then, just to make things even more fun... the credit card companies that most of us small business owners need to use since banks are not friendly to small business, raise their rates to 29%. Now I don't know about you, but I would be estatic to be making 5% on my money yet they get bailout money so their execs can still make 6, 7 even 8 figures income while I have not paid myself since October of 2008 and all my money goes to paying debt. I would LOVE to see the government force the credit card companies to stick to a flat 12% or even lower interest so we can start reducing our debt load and start spending our money back into the economy. (Delavan, Wisconsin)
chris 10/12/2009 3:10:28 AM

We have seen no benefit what so ever to our business from the stimulus plan. Even have financial institutions not paying their bills owed to us. What happened to the fleecing of America segment on the nightly news? Working hard so don't ever have time to watch the nightly news at 5:30 anymore but can't say the bailouts of the banks have been helpful to us or any of our clients. We would like to see officials start walking the walk rather than just talking the talk. Until there is a tangible benefit that we can clearly say "yes, this helped our business", we are not convinced that small businesses are being helped sufficiently. Main street America small businesses need assistance expediently. Federal officials need to take action against corrupt financial institutions and start sending more of these folks to jail. It is a shame to see criminal activity ignored such as financial statement fraud that has been reported to federal officials but nothing being done about it, for years or ever for that matter. (starkville, ms)
RAY STARK 10/12/2009 3:10:28 AM

ALL I HEAR IS TALK FROM YOU AND PRESIDENT ABOUT LOANS FOR SMALL BUSINES. I OWNE R&R LAMINATING 4 EMPLOYEES NO BANKS OR ANY ONE WILL TALK TO ME ABOUT GETTING A SMALL BUSINESS LOAN. SO NOW I THINK THAT I AM GETTING BULLSHITED BY YOU AND PRESIDENT.

THANKS
RAY STARK (WEST CHICAGO, IL)
RAY STARK 10/12/2009 3:10:28 AM

ALL I HEAR IS TALK FROM YOU AND PRESIDENT ABOUT LOANS FOR SMALL BUSINES. I OWNE R&R LAMINATING 4 EMPLOYEES NO BANKS OR ANY ONE WILL TALK TO ME ABOUT GETTING A SMALL BUSINESS LOAN. SO NOW I THINK THAT I AM GETTING BULLSHITED BY YOU AND PRESIDENT.

THANKS
RAY STARK (WEST CHICAGO, IL)
Roger 10/12/2009 3:10:28 AM

Businesses don't need more loans...that is the problem to begin with.

Think of a loan like throwing a hunk of lead to a drowning man. He has to swim harder. Does it really help?

Businesses need less regulation, they need a government that will HELP them navigate the world of regulation, NOT PUNISH THEM (ex OSHA, EPA fine etc...)

Perfect example is the new COBRA law, I now have to pay 65% of a laid off employees COBRA and hope to get a credit on my next quarters taxes?? What complete idiot came up with this? I already laid people off because I DON'T HAVE CASH FLOW, now I have to prepay the premium hoping to get a credit on my payroll taxes...what happens when they repeal the credit but don't repeal the requirement to pay the premium?

This administration is a disaster. (Rochester, NY)
Robert Stevenson 10/12/2009 3:10:28 AM

In the comment submitted by Scott Thomas I agree with most of what he said, until he got to the point where he indicated he would like to see a global economy. We are already involved with a global economy. One in which we can't compete with the S.E. Asian countries in manufacturing for example, due to cheap labor costs, and business which have few if any environmental restrictions on their manufacturers. If our government really wanted to help they should cut the corporate income tax, reduce the capital gains tax, reduce or eliminate (at least temporariyl) the payroll tax, stop this new tax on busnesses making over $250,000, forget Cap and Trade, and Card Check, enforce E-verify, and finally incentivise loans to small businesses. We can compete if we are on a level playing field, which right now we are not. (Jackson, WY)
Connie 10/12/2009 3:10:28 AM

What we need in this country is respect for each other. I am so mad and have had no help trying to keep our 26 year old business going so the 20 hard working people can keep their jobs. NO ONE REALLY WANTS TO HELP A SMALL BUSINESS. THE BANKS ONLY WANT TO HELP PEOPLE THAT REALLY DON'T NEED HELP. I AM READY TO JUST GIVE UP. I FEEL LIKE THE LITTLE RED HEN, EXCEPT I AM STILL NOT READY TO EAT MY BREAD BECAUSE THE FEDERAL GOVERNMENT IS SO GREEDY, THEY WANT US ALL TO STARVE WHILE THEY LIVE HIGH ON THE HOG. THE BIG GUYS REALLY HAVE NO IDEA HOW THE REAL AMERICAN PEOPLE LIVE AND WORK. (Bossier City, Louisiana)
JJ Keck 10/12/2009 3:10:28 AM

Banks will never be the solution for small businesses and will never be friendly to small businesses, despite the hyperbole of the bank marketing campaigns. this is a historical fact. Because they had no access to bank loans, small business owners relied on their credits cards for financing when rates were low. The problem is that, some years ago, the credit card lobby bought and paid your Congress for favorable statutory changes that allow the issuers to raise interest rates on a whim -- the highest I have seen is 56%! In the past only organized crime could get that kind of rate. The issuers are bleeding small businesses to death and contributing mightily business failures, but place the blame on Congress for taking the lobby money. The US Chamber needs to start the battle to turn this wrong around immediately. (Woodstock, IL)
John Gerena 10/12/2009 3:10:28 AM

$15 Billion Dollars for small business is a JOKE.
Small Business are the backbone of the U.S. Economy and this admistration is giving Trillions of Dollars to the Banks which are not loaning. If you are a Business in Need of Cash Contact: WORLD BANKCARD SOLUTIONS FOR A MICRO-LOAN PH. 407-992-8394 they are the leaders in CASH ADVANCE FOR SMALL BUSINESS. FROM $5,000 TO $250,000 IN 7 TO 10 BUSINESS DAYS. (Oralndo , Florida )
Lynn Alderton 10/12/2009 3:10:28 AM

After 25 years in business, we are now experiencing "bad credit" through the loss of sales, bankruptcies against receivables, and closed businesses. We have lost $250,000 from client bankruptcies or closings. Our largest client base was real estate developers. We are no longer eligible for any kind of loan because we couldn't get a loan to keep us from being behind on payments. At risk is 25 years of hard labor building a business and everything we personally own. A tax credit next year will do nothing to help our immediate problem. If or (when) we go under - unlike the 42 people we layed-off - we will not have anything left, nor a place to live, nor health insurance, nor unemployment insurance to at least pay for food and gas to look for a job. I'm almost 60 years old and my payback for contributing to producing jobs for 25 years and personally working approx. 120 hours a week to ensure our company growth has been reduced to being called "a bad risk". Because of the financial institutions greed - many companies have been crushed. Like many others, I thought this recession would pass and I indebted myself and cashed-in everything I could to hang on. We have been affected by this recession for almost
1 1/2 years. I have never made over $250,000 as a small business person. I have always taken as little as possible from the business so that I could reinvest in the business with profits. Now I'm destitute because greedy financial institutions wanted to make billions of dollars at the expense of regular people. I think we should have the right to sue them for risking our businesses and personal lives for their own profit. (Wilmington, NC)
Joseph 10/12/2009 3:10:28 AM

Show me the money! When banks won't provide even a secured loan, you know something is very wrong. We tried to get a secured loan putting 200K in assets against a 40K secured note. This is only 22% leverage against the assets, but the banks still do not want to lend because its too risky? How is small business supposed to survive this down turn when customers have all but dried up for so many businesses. You would think that since small businesses account for 70% of new job creation in this economy, we would be too big to fail. Instead you have money going to bailout loser institutions that should have been allowed to fail. Sadly, it looks like the next shoe is about to drop with a wave of small businesses likely to fail this year. Hope the government realizes that the longer they coddle the banks the deeper the hole is being dug for everyone!
When you can not borrow against assets what is the point of building a business! (DFW, Texas)
C Smith 10/12/2009 3:10:28 AM

I learned 10years ago that the bankers and politicians are cut from the same mold. Three top bank executives entered my office unannounced and demanded immediate pay off of our commerical line of credit. Even though we were within the terms of the agreement they demanded a quicker turn on there money. Since then I have never relied on the banking industry for anything except checking. I have figured how to finance our operations without bank help through private sources. My point being, If you are looking to the government, banks, bailouts, stimulus package, or other outside intervention get over it. This is all about government control, power over business, loss of personal freedoms and liberty. Those who voted for this President and current administration are getting exactly what they voted for. How is the change you can believe in working out for you? I sincerely wish everyone good luck because that will be all the help small business will receive.
Mike H. 10/12/2009 3:10:28 AM

Our c. cards are maxed out lines of credit maxed. People here are not sure what will happen next.We have houses that are not selling,retainage uncollectable from our comm. jobs,lincensing boards ,stricter codes irc 2006/ibc 2006 inflation of our dollar, The cost of insurance, over head cost personal bills.cost to the consumer is becoming to high.A huge 2 trillion dollar plan that is coming from a Pres.that said he would cut taxes. (Baton Rouge, La.)
David Bianchi 10/12/2009 3:10:28 AM

I agree with most of everyones comments. I am also unable to secure any financing, regardless as to what Washington thinks they are doing. I agree that more loans and debt is not what we need, but how are we then suppose to get through this economic down turn? Obama wants to invest in America, but basically the financial system is responding by telling us we are not worth investing in. It's true the big companies that are receiving the help are the ones to blame for this mess in the first place. Because of the lower production costs and lack of regulation in other countries competing globally is a joke. What we really need is a cost of production tariff on imported goods. As ridiculous as it seems the sport of Bowling has used handicaps for as long as I can remember. Puts everyone that plays on the same playing field. I fear revolution may be the only resolution. (Bolingbrook, IL)
Carl Nedeau 10/12/2009 3:10:28 AM

While Mr. Donohue's comments regarding loans available to small business sounds like a real good deal for us, it is not reality. AS of yesterday SBA does not have rules on how to even implement the ARC stabilization loans to help small business in the interim. Unless SBA loosens it lending criteria, no business suffering as a result of this crisis will qualify for a 7A loan. (Braintree, MA)
Kathy Pihlaja 10/12/2009 3:10:28 AM

I own a small manufacturing Company, 4 employees. Calling Harris Corporation with thousands of employees is a joke. It is not humanly possible for a truly small business to ever get a government contract. Why? Because companies like Harris hire people specifically to get and maintain government contracts. An actual small company should be defined as under 20 employees. Next, there is NO MONEY out there available to small businesses. ALL of the help available is for the BIG guys. There is NO MONEY available for start up companies unless they are hi tech or somehow computer related. I am a woman inventor and believe me there are no "breaks" out there to be had. Money needs to flow in order for our country to thrive. The absolute backbone of the American economy is the really small, usually family owned, mom and pop business. We are being asked to shoulder the financial weight for the GIANTS like AIG that have robbed us of our IRA funds and profited substantially from our loss and then been rewarded for this behavior. The small business sector needs IMMEDIATE help. We need loans with 0 interest rates for 3 years. We need the paperwork to be easy enough that a small business can actually figure out how to get these loans, not just the BIG GUYS like Harris Corporation. (Satellite Beach, Florida)
Gallaggher's Dining and Pub AZ 10/12/2009 3:10:28 AM

No one listen's, Its a runaway train. The Government needs to help the people not the Banks. We will survive but it cost us the time of our lifes. The last 3years have been hell for small busniess and next 3 we start over AGAIN. WE NEED DIRECT SUPPORT WITHOUT THE BANKS. (lake Havasu City, AZ)
Ron 10/12/2009 3:10:28 AM

What they need to do is realize that it's most start up biz that looks at the SBA loans. They need a provision in there for already successful biz models that just need capital..Business owners that are already in business don't need SBA loans. (Knoxville, Tennessee)
Paul 10/12/2009 3:10:28 AM

I also don’t think more loans are the answer. Unless the loans are coming directly from the government (bypassing the banks which have no real interest in lending money to small business anyway) with an payment schedule of interest only for two to three years. By then, most small companies should be healthy enough to either find new funding or repay the loan. Forget the banks!!!

If the government is really interested in turning the economy around, let them eliminate the Federal income tax for employees who work for small companies that have 100 or less employees for two to three years. This will help consumers pay down their debt and generate more spending which will help turn the economy around that much faster.

We as small business owners need some tax relief, and then some more tax relief. Can we say it enough times? Reduced Payroll Taxes Reduced Worker's Compensation and this Cobra thing has got to go.Let the government pay the 60% directly. Why tie up our cash flow? We need our cash to continue building our small businesses into large businesses so we can get some of that bail out money.
(woodside, NY)
Tim 10/12/2009 3:10:28 AM

I am self employed, and I am in the real estate inspection business here in Illinois. With the down turn in the industry, things have slowed down, but smart planning and a reserve of cash has helped me through this period. I have taken a line of credit from the Bank of America, and am getting wacked with the high interest, even though they recieved government money. Last week I tried to borrow 15,000 and was denied due to my income to debt being to high, what are small business owners to do? I applied for a SBA loan, and was also denied, the reason being I have a stated income on my tax returns. Where do I turn to get a loan? My bank will not lend me money again due to my debt to income level even though I been a customer for 20 years and have had past loans that were paid off before they were due, also my credit rating is near 800, but I guess that doesn't matter any more. Stimulus money, us small business owners will never see a penny of it. (Monee, Illinois)
C Gardner 10/12/2009 3:10:28 AM

I had my own business for twenty years and now faced with selling my office condo to get out of credit card dept. I had to keep borrowing on credit cards to pay leases on equipment that already have interest. Three years ago I had no problem paying bills. I desperately need a consolidate loan. We should be able to get this loan's. The Banks rather see us default than help us. (Westford, Ma)
Kevin Cooney 10/12/2009 3:10:28 AM

This isn't really a comment, more of a question. In Mr. Donohue's articles, when he refers to 'small businesses', what is his criteria for or definition of a small business? Thank you, Kevin. (Ogallala, Nebraska)

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