Comments on: Obama's small business rescue plan: The details

By: Robbie, Jefferson City, Mo

Robbie, Jefferson City, Mo — Tue, 13 Oct 2009 17:22:50 +0000

I'm sorta in the same place you are. I can't pay the SBA loan we got in 2004 and I have my house up as collateral at the bank where I got my SBA loan. I looking for the same anawers you are. I thought the SBA would garantee a percentage of the debt if I couldn't stay in business.

By: Cathy, Indianapolis, IN

Cathy, Indianapolis, IN — Wed, 18 Mar 2009 16:42:50 +0000

What about someone like me who already is bankrupt because I could no longer pay my SBA loan because my business failed?? The business failed in 2005, I didn't file for bankruptcy until 2007 and the balance of the SBA loan is still sitting there and now it's 2009. I have no way to find out what the bank is doing. Do they want my money? Are they going to write this off? Are they going to take my house that I used as collateral? It has been a nightmare. Does anyone have any answers for me? Thanks.

By: oak grove,LA

oak grove,LA — Thu, 12 Feb 2009 03:34:52 +0000

Trying to borrow ourseles out of debt will only postpone the pain. spending more than we have to spend, encouraging citizens to borrow more than they could pay back, along with many other wasteful government activities got us to where there must be a reckoning. We have a recession coming. Diluting our currency to the point of hyper inflation will require us to ultimately endure even more pain, maybe even a real depression. Thats what we get for hiring a CEO thats never run anything but his mouth.

By: Pete Glennon, Greenville SC

Pete Glennon, Greenville SC — Sun, 16 Nov 2008 22:53:39 +0000

I agree with lowering the fees but disagree in the category change to Disaster Recovery and involving the Feds directly. Banks are the ones who can tell if the loan is a good or bad one to make based on the business's success and track record. The bank should be on the hook as well as the borrower and SBA. If it's not good enough for the bank, it certainly isn't good enough for the SBA.

By: Gail San Clemente, Ca

Gail San Clemente, Ca — Sun, 16 Nov 2008 19:34:13 +0000

SBA Economic Injury Disaster Loans (EIDLs) are an excellent idea because SBA has the infrastructure in place to implement this well-established program immediately. No new bureaucracy needed. Loan fees are zero, paperwork limited, approvals quick, interest rates low and amortized over 30 years. Previous disasters SBA has helped include non-natural events (see their list of recent disasters). We don't need to wait, our Governors can request this program for their states. Our Governor Schwartenegger is not responding to requests to request this assistance for Calif. Why??? This is true help for main street. We need this ASAP. President-elect Obama called it correctly when he proposed this simple, but brilliant idea.

By: Ventura, CA

Ventura, CA — Sun, 16 Nov 2008 16:42:31 +0000

My business revenues are off 80% from last year. I cant wait to get the biggest loan I can so I can start paying myself a really good salary again until the money runs out. When its time to pay it back, I'll claim I didnt understand the terms and am now broke. Show me the $$$!!

By: Dayle, Hinsdale IL

Dayle, Hinsdale IL — Sun, 16 Nov 2008 16:25:56 +0000

You can give all the money to the car industry if you choose. They can make more cars to keep people working. But…at some point, if nobody can buy these cars, there will be an over inventory and you are back to where you started. Cars sitting, layoffs, and the situation remains the same. Are the employees of the car industry going to buy up all the cars? No. Now we have what we started with…over inventory of cars sitting on lots.

By: Gwen, Willowbrook IL

Gwen, Willowbrook IL — Sun, 16 Nov 2008 16:22:04 +0000

Doesn't anyone get it? The catalyst of the economy is the small business owner and the consumer. If you direct funds to the catalyst, all other industries (major) will benefit. cars, banks, insurance, food, gas, jobs, etc. But because the government is so self-centerd and not willing to assist the "people" with the "people" money, they cut off their nose to spite their face.???? Direct money to the small guy – not the big guy. The small guy will buy, the consumer will buy. Isn't this what we need? People to buy to boost the economy?? What are the so called braniac's thinking??? Feed money to the bottom, and it will filter to the top because we SPEND money.

By: Taf Baig

Taf Baig — Sat, 15 Nov 2008 19:04:24 +0000

Dear Barack Obama:
Our country needs help from the banks and the latest Treasury's awful decision making. While the treasury has pumped money in to the Banks who created this problem by their exotic securitized debt papers, the money has not come to the Small Business of America. Our rates have not gone down since the FED reduced the lending rate to 1%. Quite the opposite has happened. Our credit lines have increased the interest and the available interest has been cut. My vision would be to put the money where it needs to go, to the people and to small businesses. With a program like the disaster relief program you had suggested.
This 700 Billion dollar TARP program is only recreating the problem that initially started this mess. I hope that you can stop the congress from giving any more money to the banks and corporations before you take office. The small businesses of this country did not create this problem – we sure are paying for it.
The large auto companies don't need the money. It is the people who work for them and their suppliers. Why should the big companies get the money? What about the all those smaller start-ups that are trying to make cars using renewable energy, solar power, electricity. Etc. Do you want to see a huge change really quick? Fund the small businesses of America and guarantee the pay of the auto workers who will lose their job and have them work for these small companies. That will be change.
Let's give the money to the people it belongs too. Not the companies that created the problem. Let's not repeat the problem that got us here in the 1st place.
Let me explain the problem and events so even your daughters and my two children can understand it as well. I know that you are getting a puppy, and let me explain to you what has happened with the housing and other so called securitized loans using an analogy between houses(and other financial products) and puppies. Let's say you buy a puppy for your daughters. You finance the puppy from your bank. You agree to pay them a certain amount a month for the puppy. They turn around and sell the puppy ownership as CDOs (Collateralized Dog Obligations). After they sell the CDOs, they get money to lend again to buy more puppies. They keep repeating this for years. Finally there is a plague and the puppy gets very sick and you can't pay the bank for the puppy. The bank takes your puppy away. Now the puppy can't be resold, because there are a lot of sick puppies that the bank holds. The Treasury comes in and gives the bank more money that they borrowed from the puppy owners to loan to vaccinate the sick puppies. But, instead of vaccinating the puppies, the banks use it to buy other banks with sick dogs and fix their own balance sheets. This is what has happened so far. The banks will repeat creating wealth the same way they did in the past. The reason they will, is because not only do they have to pay themselves, but the stock holders and now the treasury.
Bailing out the automakers will have the same effect. The vaccine needs to go to the people working for the auto makers and that vaccine needs to get the workers so they can get better first.
I have owned my business since I graduated from college. Like you, I worked hard all my life and was not born into a wealth. I am sick today – I can't get a vaccine for me and my employees because the vaccine is not available. The banks used it to vaccinate their dogs.

By: arnold,sun city, az

arnold,sun city, az — Sat, 15 Nov 2008 11:04:27 +0000

make it happen!!less talk,more action!!

By: Pete Glennon, Greenville SC

Pete Glennon, Greenville SC — Mon, 03 Nov 2008 01:41:06 +0000

I agree with Dave of Grand Rapids MI.
Keep in mind though that the SBA wants all assets as collateral, which means that whatever is already pledged has to be unpledged to give it to the SBA. That's hard to do. As long as the SBA limits will allow a consolidation loan, which takes out the bank that loaned prior, and that the lending limits are high enough, it sounds ok. But there does need to be a way for the bank to make money with a prime + 2? rate or even higher if needed. We're talking about Subprime business loans here.

By: Dave - Grand Rapids, MI

Dave - Grand Rapids, MI — Fri, 31 Oct 2008 21:04:06 +0000

As an SBA expert of sorts (I help banks in Michigan with SBA lending), I'd like to weigh in with this. Easing the fees charged to banks would obviously encourage more banks to make SBA loans, but there is a far better way to get banks to make these types of loans. SBA currently have a cap on interest rates which can be charged a borrower. Traditionally and in usual credit market situations, these caps are plenty high to work just fine. However, in the current lending environment, many banks are finding that they're charging their best customers at rates near these SBA maximums. On SBA loans they feel like they should be making more on the rate than the rate maximums allow. I'm suggesting to SBA and anyone who will listen that SBA either temporarily increase these caps or temporarily remove them. Since these caps are tied to the Prime rate, which is steadily decreasing, banks are less and less interested in making SBA loans at the rates they are allowed to charge as these rates go down with Prime. Remember that Prime rate is an artificial rate, and right now it is in no way indicative of the rates banks are charging. That's actually a good thing, however. Banks are charging higher rates and money is starting to move at those higher rates. Please help me in lobbying SBA to make this temporary fix to their system which will greatly increase the number of SBA loans being made.
Also, lastly, please remember that SBA loans are down because commercial lending is way down. SBA loans are commercial loans, and, of course, all lending in our economy is slowed currently. SBA loans are no different. Banks don't want to lend in an uncertain environment and borrowers don't want to borrower in one either, by and large. This too shall pass.

By: Asim Kumar Das, Ranchi, India

Asim Kumar Das, Ranchi, India — Fri, 31 Oct 2008 12:06:56 +0000

The whole thing is 'Bunkum'. Neither Obama nor McCain has any answers. Time will take its own course. Whomsoever is elected will get credit/discredit and that's his luck.

By: bill linden michigan

bill linden michigan — Thu, 30 Oct 2008 20:28:55 +0000

My company is in financial trouble due to the housing market and helping me fund the loss of revenue is a necessity
for my survivial. I hope the new administration can do more than our lame govenor

By: Anonymous

Anonymous — Mon, 27 Oct 2008 17:03:28 +0000

Me, being an Economist from Canada find this resuce plan the only solid envidence of positive influence within the United States during their desperate time of need.

Wether or not it's too little too late it is definately called for.

By: Linda, Rural Nevada

Linda, Rural Nevada — Thu, 23 Oct 2008 19:23:10 +0000

Remember folks, this says it is a rescue plan for those businesses who were affected by some disaster…and I don't think they are referring to the stock market disaster! Obama's plan still does not address "what" he will do to help us small business owners who 's doors will close soon because of outrageous costs from insurance companies who still hold us by the throat for medical, property liability,BOP and payroll insurances.

By: Colorado

Colorado — Sun, 19 Oct 2008 14:50:37 +0000

Patrica I have the same problem, hard working small business almost all profits go back for wages and medical for employees.But still over $250,000 I have called the Oboma camp but guess what no return calls to answer any of my questions? I dont trust any thing the politions say any more! Frustrated in Colorado

By: Barry, Fullerton, CA

Barry, Fullerton, CA — Sun, 19 Oct 2008 03:41:22 +0000

Venkat:

I find your comment very refreshing. The idea that we may have to consider fundamental change scares those who have done well in the current system and gathers only moderate support form those who may benifit from the chnage/

By: Barry, Fullerton, CA

Barry, Fullerton, CA — Sun, 19 Oct 2008 03:37:59 +0000

Well I for one am pleased that the debtor prisons and workhouses are there so all of those of us weeded out have someplace to go.

If I am not for myself then who will be for me? If I am only for myself then what am I?

By: Barry, Fullerton, CA

Barry, Fullerton, CA — Sun, 19 Oct 2008 03:33:07 +0000

Patricia:

I too run a small service practice. The plan proposed by Obama is based on taxable income after deduction for the items you listed. If the company makes over 250K EBIT then the incremental rate goes up by 3%.