Small Business Bailout Considered By Obama Admin.

washingtonpost.com:

The Obama administration is developing an initiative to take money from the $700 billion program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people, according to sources familiar with the plan.

Read the whole story: washingtonpost.com

Comments

[conservatist2010-12]

Finally ...A republican solution

[DXM]

Republicans, especially over the past decade or so, have pushed policies that have favored large corporations at the expense of small business. Despite all their talk, the GOP has become increasingly anti-small business. I don't know if this proposal will help, but if money is going to be spent, I certainly like the idea of the money going to small business instead of large corporations that created the mess we find ourselves in he first place. (Disclosure: For the past 17 years I have worked for small businesses and I have been a small business "owner" myself - freelance writing and lecturing - so one could claim I have a bias here).

[CologneCitizen]

IMO stimulus money is just cosmetics. Maybe the American system has to be re-invented. Your economy is built on consumer driven demand, opposite to our economy in Germany which is export oriented. As the economy largely exists on confidence, trust in the future and other psychological facts you are in a hole right now. You cannot go on spending what you don't have and not spending will slow the economy even further. Obama is no magician. I guess you will have to live with the fact that unregulated greed and an absurd materialism has destroyed large parts of your society.

[Kassandra]

I think most of US have awakened to that fact, except of course, the megacorporations who think,( If they do at all, they're supposedly people now,ya know, here in the greatest country on earth).
Nonetheless with a cool 350+ billion laying around just waiting for some shark to ask for it. I see this as a + development as it is these very small businesses that DO keep the economy running.

You wouldn't BELIEVE how many small businesses are gone or underwater, these days in the "Land of the Free. Home of the (yuk) Brave".

Nonetheless, you are correct sir. Sending all our technology and jobs overseas was a (cough) mistake. AND our way of life that wasted, wasted, wasted and is still going on is a travesty of the soul and the earth
I'm glad to hear that there may actually be some help for the small instead of the large.
I hear Congress is considering taxing the rich to pay for healthcare...but it starts at $280,000 per individual and that's just the middle class again. It should start at a million.
I doubt it will pass the Senate at all with it's multimillionaires but, we' will whip it, indeed, we will.

Congratulations on living in a sane nation...but remember, the America taxpayer helped bail your country out too. Our beloved leaders have put the entire world economic crisis on our shoulders yet quibble about giving the people anything at all to help us bear it.

[yemaya]

Good idea armadillo. I concur. Make the incentives even more attractive if they use Green and/ or energy efficent equipment and appliances.

[SangZe]

I will reserve judgement until I see action. Too often we've heard Obama claim to be doing this or that only to find his words empty or shallow. It's very easy to make proposals. Anyone can do that. I propose a stimulus for all citizens earning less than $100,000 per year, and an equal stimulus to all small businesses, including self-employed artists. I propose a new public works program, a new conservation corps. I propose that courses in American history and government (civics) be required of all middle-school and high school students. I propose that all public school students be required to learn a second language beginning in the Third Grade. I propose . . . we stop grousing about who is to blame for the economic disaster we face. We all know the answer. That's why we voted for change. It is time for action, not words. Wake up, Mr. Obama. Act!

[armadillious2002]

Any small business plan needs to include more investment tax credits to replace old equip. This creates jobs across the Nation IMO.

[DLBSR]

Tough economic times call for tough business leaders, large and small, to make the tough decisions that will allow their businesses to prosper. Those tough decisions do not include running to the government pleading for a handout. As the owner of three small businesses, engineering, manufacturing, and oil & gas production, I will submit these are indeed difficult economic times. My businesses are not immune to adversity, but they have proven to be resilient. Business owners must understand, when business is down you must be innovative, creative, and daring. We must draw on our experience and develop new ideas, new technologies, and new products, and provide additional services for our customers and for the market place if we are to survive and prosper. We cannot blame our competition for unfair trade practices, we must challenge them and provide superior products at a competitive price. This is the time for entrepreneurs to re-invent their businesses, to be bold with a re-kindled can-do spirit that allowed for us to go into business in the first place. To accept government bailouts is to permit the government to tell you how to run your businesses, and that my friends is a sure recipe for failure. No thank you Mr. President, I will not only save my businesses, I will grow them with boldness, ingenuity, and determination. I will do it as I always have, on my own dime.

[armadillious2002]

It's not about saving your business - it's about saving the people who work for you.

[DLBSR]

Saving and growing your business is saving the people that work for you.

[Kassandra]

And I wish you all the luck, Truly.

[RJII]

its too late for my very small business, but I hope it helps others and gets this messed up economy back on track. GObama.

[TheBender]

Why not just issue convert the $US to the Chinese Yuan and be done with it. Another stimulus package, what a joke.

[armadillious2002]

Yeah no kiddin' - thanks W for selling us out to the Chinese.

[TheBender]

Let us not forget the participation of Mr. Obama in creating pork and payola.

[SkippyJones]

OH please - first this article says these are "early" discussions. Don't hold your breath. But frankly, that would be better than subjecting a flotilla of small businesses to the ineptitude of the SBA 7(a) program. Their loans might be ready by 2013. And a 90% guarantee - it is already 85%!!! If banks aren't lending based that, do you think upping it 5% will make a difference???? The problem for small business, especially truly small ones, like 1 - 20 employees (SBA's definition of "small business" is up to 500 employees in manufacturing, $7mil in receipts other industries) is that they have LACK OF COLLATERAL and/or damaged credit reports from the LOCs that have been reduced on their small biz cards, killing their utilization. The whole credit system was not set up for our present freefall, and the SBA is not set up to aid MODERN businesses, in which intellectual property propels innovation. The SBA was built for a manufacturing economy, which we are not. Any program administered through SBA will FAIL in creating the kinds of jobs Americans need, unless we are to become a nation of serfs working at sub shops. Because a franchise run by a non-college graduate has fifteen times a better chance at getting a SBA loan than a software company. Look into it. The problem isn't government guarantee, its lack of collateral, and banks don't take IP as collateral. Google, any biotech, the list goes on could NEVER have gotten an SBA loan.

[Kassandra]

From what I understand, under Mr. Bush, the small business laons went to big business and small-medium sized business could go whistle.

[RTIII]

(a bit late, but) ...Aint it the truth!? I Tried and failed to generate _any_ interest in help from a bank in getting an SBA loan. My observation was that they'll only lend if you don't actually need the money.
.

[holman2]

Obama supporter says: How about a bailout for us salaried workers who work at big companies? Or better yet, how about some bailout money for unemployed workers who use to work at big companies? Where does it end? Oh, and let's cap the income of all the small business owners, and take away all their bogus tax dedcutions. You know, the company cars for every member of the family and the compamy boat and the vice presidency for your daughter who lives 1000 miles away.

[Strongbow]

Fantastic idea....Republiclowns keep pushing small business help and here it comes and wow, the conservative posts are filled with hate....maybe unbrideled criminality and food lines would make them happier....heartless weasels.....

[Kassandra]

We've already gotten there.........I don't see any change Dem or Repub. they're all acting the same in my book.

This post says to me that maybe, just maybe, they're starting to wake up a little.
Lookee this:
Leaders in House Seek to Tax Rich for Health Plan
http://www.nytimes.com/2009/07/11/health/policy/11health.html?_r=1&hp

Silly me, I thought that was how Obama planned to pay for it anyway....now we'll have to fight for it when all he'd have to do would be and executive order rescinding the Bush tax cuts ( in a time of war no less) on the VERY wealthy. This just puts it back on the struggling middle class.

[PhilipTaylor]

Amazing what dropping POLL NUMBERS can do!

I hope for his sake this is NOT another failed attempt as America is wise to the TRICKS of Congress and the G0LDMAN/FED Employees he hired.

Stop the FAKE HOPE THING AND DELIVER!

[jozzie]

Good post.

[sueinmn]

Will it be as effective as the Home Affordable plan? Another flop!

[enoughalready13]

Why don't they just send every citizen a mini personal currency printer .... it would be the cheaper and faster way to bankrupt the nation than wrangling with all this "tarp" and "bailout" nonsense.

[surferbuoy]

Why don't they just send the money to the citizens...we can pay for our home..no more mortage problems, buy a new car, no more auto problems, pay off our kids college loans, no more cc debt. etc etc, we know how to spend the money & create jobs. Give the money to us.

[heal57]

I second that.

[Kassandra]

That would be....wrong. that would be....socialism.

[Tom95134]

You can "consider" all you want but I suspect you've blown your wad and it will be almost impossible to get any additional stimulus through Congress.

Letting the States get their hands on the stimulus money was a major mistake because they will do what they want with it. An excellent example is the money for transportation projects. Many States are spending that money in rural areas in spite of the fact that it is the urban areas that would benefit most from transportation projects.

[Kassandra]

they still have over 350 BILLION laying around doing nothing but collecting dust. Give it to the people who actually provide work in this country before AIG decides it needs some more...for bonuses.

[hey0there]

Chuck Shumer will block this. If it isn't a megacorp or a indian guest worker, he has no financial interest in helping, and therefore it is not in the public interest