What's in the stimulus for small biz
Emergency bridge loans and reduced fees for SBA-backed loans are some of the stimulus bill's steps to help small businesses struggling to survive the recession. How effective do you think it will be? What do you want to see the government do to help small businesses?
From Waymon, Castle Rock, Colorado The stimulus package that is (reportedly) designed to assist small business is smoke and mirrors and I do not think much more will be done to prevent tens of thousands of small businesses from going under each month. Although small business employs close to 55% of all Americans, it is not in the best interest of our elected officials to help those who cannot finance political campaigns or back projects that enhance political careers. In large part, TARP funds provided to America’s largest banks were used to pad portfolios that will eventually help a pompous few. In other words, a huge portion of TARP funds was given to the greedy. The government neglected to figure greed in to the TARP equation and now most of America is worse off for it. If you haven’t read “Confessions of a TARP Wife”, please do. It was reportedly written by the wife of the current CIT Group CEO. She complains that her extravagant life style is suffering because of the oversight imposed on CIT Group after receiving $2.33 billion in TARP. Apparently she thinks her husband should be able to do what he wants with American tax dollars, tax dollars that small business would have used to sustain jobs and perhaps create more jobs. Bottom line: The greedy and self-serving will not change and most of America has and will continue to suffer for it.
From Charles Stanley Fort Worth Texas I have a small business.
(Witter Mfg Inc) I have been in business for the past 20 years. Witter is a cable and harness manufacturer. My company located at 2650 Cobb Park a business deprived area. Has an opportunity for a Lockheed Martin Fort Worth F-16 cable and harness 15 year manufacturing contract. We could possibly provide 20 to 40 full time jobs in this job deprived community. Our proble is to get this contract we have to get a first article testing costing approx 2 to 300 thousand dollars to qualify for this contract. I would like some help to qualify for some stimulas monies to get these test done and qualify for this contract opportuntiy. Again my company name is Witter Mfg Inc and we could provide 20 to 40 joabs in this job deprived Cobb PArk area of Fort Worth
Thank you for your help
Charles Stanley 682-465-0440
stanleycharles@sbcglobal.net
From Ann Tittle, Galion, Ohio Right on! Your story sounds just like ours. What happened to the land of opportunity!! We always pay on time and way more than the minimum. My banker told me that they don't like you to pay off your credit cards b/c that's how they make money. Well, excuuuuuseee me for having my finances in order. We were doing okay until they raised our credit card rates (even personally) and chopped all our credit lines to look like we had maxxed out every credit card. We don't know where to turn and I came to this site looking for some answers. Where can we go?
From Stacey, Gulfport Mississippi This stimulus package will not help the majority of small businessses in any way. If a small business is already financially stable then it can get a SBA backed loan but if it is not financially stable then there are no options. Once you get behind on a few payments of any sort your credit rating takes a huge dive and then you are no longer worthy in the eyes of the SBA or a bank. Give me a break! This is so absolutely infuriating! Don't make promises that you never have any intention of keeping. Until we get somebody in power who has actually been a small business owner and knows the real struggles that we encounter on a regular basis this will never change. Small business owners don't need tax credits if they cannot even afford to pay their taxes.
From Ron Hirkala New Cumberland, WV We asked for help for our small business through SBA. we need $35000.00 We where turned down.. Our credit is excellent. we showed SBA if we got this loan how our business will expand with this we will need to hire employees. So where is this stimulus money.. Maybe we need to be big Bank.
From Wilson, Orange California Nothing in the stimulus is for small business…We applied have excellent credit, and were denied because we are part of the construction industry, we install security equipment. That was their reason.We have never been denied credit. So where is this stimulus money anyway??????
From Ann, Monmouth County, NJ I'll tell you something that would help my small business much more than this. We paid off our mortgage several years ago. We used credit cards for our business. Then, the banks lopped off all our credit card limits at the level they were in Oct.
sending our fico scores down to 690! What this did was ruin our "excellent" credit turning it into only "good" credit by changing our loan utilization ratios. The effect is that we cannot refinance our house to expand with a no-doc loan. We need a no-doc because the last couple of years
we were not paying ourselves much by choice – preferring instead to make long-term investments in the business out of cash flow.
Its crazy! We have plenty of assets in our home, retirement, etc., but we can't tap it!
From Joanne Anderson, Oakland, California Lines of credit have ended. We need to revive them. Maybe escrow accounts could be set up where money is advanced for payroll and/or purchases of raw materials, with a pledge of receivables going to the escrow account when receivables are paid. Any excess funds from those receivables in the escrow account would then be available for the company to use. This provides the cash flow with a type of guarantee to the banks.
From Marcos, San Jose,ca. A small percentage of the stimulas packaged should have been set aside to fund small business immdatlaly.this way the number of unemployed workers would be lower,small business could have kept people on their payrolls a lot longer.What stops small business from being succesful? cashflow!! The small business people take their jobs and companies very serious and we do not play to lose or to be second to none.This is the American Sprit that the politicans in Washington are lacking.If it was me I would put my money on Hard working men and women who's goal is to be successful and provide jobs, rather than bailing out selfish sleek crooks that are only looking out for their own interest.
From Gregory Evans, Atlanta, Ga Not every business is going to survive, certain businesses won't survive even if they had the money, such as retail. Many won't survive because the consumer is not spending. But then you have businesses that will grow organically because they can, such as Netflix…revenues up 45% in the lastest quarter…why?, the revenue model, Blockbuster, filing bankruptcy,why?obsolete revenue model.Same business, different revenue models. Then finally, you have businesses that learn the process of raising capital, as opposed to trying to get loans. Raising capital simply requires two things…proper deal structure and a committment to the process. Investment banking will recover before banking…good old fashioned private capital.
The sooner one learns how to raise capital the better off you will be.
From Tim Monroe, MI The problem is the stimulus bill was wasted on the wrong things. Everyone knows it and the flunkies that are running Washington used it to further thier private agenda. We needed a strong small business aspect as part of the plan and they wasted all the money on social programs. I heard a quote someone used that said " a poor person never employed another poor person". How appropriate. Our current government policies have vindicated business people as the "bad guys" here and they will learn soon enough that they need to look into the mirror if they want to see what is causing all the destruction of wealth and employment in this country. Absolute power always corrupts.
From Matt Ohio My wife and I own a specialty vintage import auto business in Ohio. We've been in business for 4 years, and our revenues are UP for the last 8 months, because we continue to expand our offerings and grow in a niche market that we feel we have >40% of the customer base of. We have a great opportunity to purchase our main competitor in a friendly acquisition. It would literally quadruple our business, result in at least 5 people hired on, etc. Our bank suggested an SBAExpress solution then told us no dice on a $100K loan after 4 1/2 weeks of underwriting hell in which we had every shred of information prepared ahead of time… Over a month wasted. It felt like I was living in the Capital One commericals.
"We only care about BIG Businesses, ha ha ha!"
We are not over-leveraged, and our business case is sound. We simply need operating capital to sustain the first 6 months of expansion. The answers they gave were murky, You're too new, cashflow looks tight (we grossed nearly $300K in 08) etc. A *#$*@# song and dance. Stimulous might be helping 200 employee small businesses, but it isn't doing much for the under 10 employee crowd.
From David Swanson – Epping, NH I am a small business owner. I own Innovative Web Design & Marketing Services in Epping, NH which is geared towards servicing small to medium size businesses.
I see nothing in the stimulus bill that will help my company. The only thing that is in the stimulus bill for small businesses is loans. The LAST thing that I want to now is take out a loan…I don't need one. As a matter of fact…2008 was my best year ever sales wise. You need to adjust with the changing economy…it is neccesary to adjust your spending as well as advertising, sales pitches and even prices to stay competitive.
I would like to see more or bigger deductions at tax time for small businesses. Something that can help all of us, not just those that need a loan.
From Ron Ferraro, Pahrump, NV Spending for the sake of spending will not "stimulate" anything. Small businesses need to try to re-negotiate their leases; see if their landlords will work with them to keep the space filled. They need to reduce their overall spending or look for alternate sources for distribution of goods they already deal with. They need to trim credit card processing fees, and squeeze every bit of efficiency out of their collection systems. They need to offer pay cuts rather than lay-offs to their employees, who will most likely take the cut to keep from being unemployed. None of this is ANYTHING that the government can help with! The government already SCREWED UP by giving the banks a huge bailout. Another bailout for the auto industry, another for the insurance companies… Listen, nothing, and I repeat NOTHING is "too big to fail." The Third Reich? The U.S.S.R.? The Roman Empire? All gone. Pangea? Cas A? Completely gone. Small businesses don't WANT a bailout, because we are the SMART ONES. We already know it won't do a damn thing to solve the underlying problem: people are not going to borrow the way they used to, and they won't spend themselves into ruin ever again. The entire mindset of the American people has changed from what it was. We evolved, overnight, out of necessity. No one really wants those crummy credit cards anymore. No one wants the big, expensive car, or the overbuilt home with the mortgage they could afford at twice their salary. We've seen where that mindset leads us, and we won't allow ourselves to go there again. It's like 911, no one will ever hijack a plane with boxcutters ever again. No one would ever be stupid enough to fall for it again. Big business, big government, big bailouts… fall for this one: your epidermis is showing.
From Lynn,Dyersburg,TN These changes may help the banks, but I do not see that the small business will benefit at all. We do not need anymore loans that we cannot repay. We just need funds to help bridge the gap lost due to the bad economy. I have had a small business for 30 years, and it is beyond repair. It looks like these new policies will not benefit any small business in trouble, only the banks in trouble. This will not stimulate the economy at all. If we lose all our small businesses, then we are in trouble. This is far from over.
From Marie, Pittsburgh, PA While it may be true that large corporations create the most jobs and pay the most taxes, small businesses have always been the backbone of America. This package does nothing for us, as Pam from Lancaster said, "we don't need loans we cannot repay". We need assistance to bridge cash flow and keep people employed (so that they don't go on unemployment)… we need assistance to purchase raw materials (to simulate other small businesses and keep our operating costs at bay)… we need breathing room while our customers get back on their feet and start buying from us again. The media has made it clear that the financial institutions have misused bailout money given to them, if that samee money was given to small businesses, I'm pretty sure the money will be invested in GROWING THEIR BUSINESS not weekend trips and bonuses'. We need help to weather this storm, our cash assets aren't going to get through this without help.
From Edna E., Camarillo, Ca I have been a small business owner for 25 years in office supplies. I was doing well, getting customers such as banks and other 'big businesses'.Back in the 80's the affirmative action law was passed which help thousands of us small businesses. I NEVER needed a loan nor did I use credit cards until last year. Why? Simple, the affirmative action law was revoked and in a short amount of time I lost customers to good ole corporate America. Money is needed, but it needs to be spread! How? Do we need a brain surgeon for answers? This Stimulus package has failed to cover ALL bases. What happened to stimulating corporate Amercia to do business with small businesses, the mainstream? Hello? any one get this??
From Pam from Lancaster, PA I agree with Richard from Rocky Mount, MO.
We don't need loans we can't repay.
We need businesses willing to hire back their sales staff to generate business and the advertising needed to keep their name/product/service in front of the people.
What we need are jobs! Jobs in construction are fine, but that is not the only industry in this country.
$2400 credit for hiring someone who wants at least a $40,000 salary. I don't think so!
I say let's vote everyone in Congress out, get rid of political parties and put REAL people in there with don't have a personal agenda and who understands what needs to be done.
Merrill Lynch went under and the stock market didn't even hiccup. Let the big boys go and let's get some small businesses started or jump started again.
From G.T. Arnone Overland Park, KS This bill does NOTHING for people trying to acquire practices in a professional field. I have been trying to get SBA backing for a firm acquisition for two months and now due to the "stimulus" bill the SBA is only providing 50% backing on loans involving Goodwill or as they refer to it as Blue Sky down from 85% before the bill.
So as a professional looking to stimulate the economy and buy a business I am out of options as now all banks are in a panic due to the new rules.
From Angelikah Freeman Pembroke Pines, FL. I personally think that this stimulus will help small businesses by giving them cushion even if they end up haveing to pay it back. I'm happy for those that recieve it and hope that citezens across America feel the same.
From George W. Bush, El Paso, Texas thats not true!
From Bryan Stevens, Avon, Ohio There is some limited money out in the market through community banks and some national banks. Our company is working with a new group called – Credit Crisis on Main Street which conducted a summit last week in Washington DC. The purpose of this summit was to list 10 top recommendations for the White House on how to support main street and access to capital.
I would be glad to share these with anyone who is interested. Please send to me your e-mail address and I will provide the list and contact information – bstevens@businessborrowersalliance.org
From Barry Morrison Chelsea, Alabama Ditto wth Tammy from Prattville I am a small Courier Service in Birmingham, Alabama and waiting on my customers to pay effects my ability to reach out to more customers. Also I would love to hire more drivers but with equipment costs and fuel costs its just not able to get off the ground. A small loan would give me working capital to start new business and grow. Barry the Courier
From Tammy Ward Prattville Al This so called Stimulus package will not do much for the small business owner. The loan process needs to be done in the same manner as student grants. The money should be issued directly from the government with simple paperwork and reasonable payback terms. We are one payment away from forclosure on our small business and from what I understand this package is no where close to becoming available at warp speed. I would be surprised if anyone saw any funds before September. Myself as well as many of my other business friends will have our doors closed within the next 30-60 days.
From Brian Javeline The average small business will not be able to benefit from the stimulus plan since the process is overwhelming complex to register, learn of and then bid on work. Each sector of the government, agencies, states and cities all have their own way of doing something. Unfortunately the only way for this to trickle down to the "true small businesses of America" is to have a singly uniform website where all the entities agree to a standardized format. I have been trying to learn the processes for over a year with http://www.MyOnlineToolbox.com representing contractors in home repair and remodeling, and it is an exhausting process even without the stimulus. Now we are deploying even more money and no one can truley say where it is going.
From Dorothy Gonzalez Clearwater Fl We are small business owners we are struggling as other company are at this time we are a countertop fabricator and installer I recently contacted the SBA inregards to a loan
and I was informed that if you have any existing business loans that the SBA will not be able to help that I would have to some how pay any existing loans and then chech back with them I asked her how or what is the purpose of SBA her comment was I don't control the government and she ended our call.. I was enraged that she would not even try to give any support or guidance to where or what might be helpful. We have had to lay off 45 employees since last year and we continue to have to make cutbacks But we cannot move forward or create any new work because we need the working Capital… "Small Business Are The Back Bone Of The Industry"
From Terry Neese Mary Landrieu is right to acknowledge that there is still more work to be done in order to help small businesses weather this crisis. It is great that the government is acknowledging the importance small businesses will have in turning the recession around; however, too much money is being spent on projects which will do little to turn things around. Small business owners are scared of what the government might do next. Many investors are reluctant to inject capital into the economy when government economic policy is uncertain. Hence, much of the desperately-needed capital is sitting on the sidelines. One simple measure the government should consider is to suspend the mark to market accounting rules. It will not solve all the ills; but it is good medicine to ward off more fever!
http://www.familyissues.ncpa.org/
From Bryan Stevens, Avon, Ohio To clarify a few points on lending; the real struggle for SBA borrowers is that the banks will not restructure these loans. Most conventional loans can be restructured since they remain on the balance sheet of the bank. The policy for most SBA lenders, especially national lenders, is pay the loan or foreclose – period. That is not right – if we can bail out banks, insurance companies, automotive etc… we can help the small business.
Nobody is requesting NOT to pay their loans but re-amortizing the loan from 7-10 years to 15-20 does not cost the bank a dime and helps the small business. That's fair and should be done.
The second issue is no working capital dollars available for small business. Lines of credit have been cut and SBA lenders have disappeared. We need to find banks to give the needed working capital.
I agree with cutting taxes and I think we should have a Sales Tax Holiday for a month to stimulate spending. Until those matters are resolved the only choice by small business is to cut to the bone, borrow along the way and keep moving until the economy turns around.
From Richard, Rocky Mount, MO Loans, loans, loans. Why in the world do people think going into further debt is a way to stimulate ANYTHING? If you can’t get a loan, you probably can’t pay it back! If people are getting loans they cannot pay back, we are digging the same hole that we used to get into this situation, just going deeper. I have seen several people get loans in the last 4 months. They ALL had good credit, and had no problem. If you give a business a loan and they can't pay it back, what is the point? I run a small manufacturing business that has been around since 1974. I only buy American made unless it is not available. I have always turned a profit, and only received financial help in the beginning.
I know this, my sales have been cut in half since Bush put his mug on TV and said "we are in a financial crisis". Before that DAY our sales were up 25% for 2008! After that day our sales were down 50%!
There is no question we need CONFIDENCE, NOT MORE FEAR! We need a stimulus package that will help Small Business by punishing imports! We sit back and pay 35% of our profit to the IRS while we watch Asia bring ready to market goods CHEAPER than we can build the components. If my competitors who copy my own personal inventions and have them made in Asia would get slapped with a FAT import tax my business would be booming. There are a few TRUE minds in this world that REALLY do INVENT things, and a HUGE population of people who say WOW that’s a good idea, let’s copy it in Asia, import it for almost nothing, and sell it cheaper!
Now you want me to hire a High-School drop out? Forget the guy that worked his butt off going to class and actually didn’t quit?
Cut FICA! Why does congress not bring this up, FICA is killing our ability to hire new employees.
Regulate the insurance companies! I am paying for over 90% of my employee’s healthcare benefits, and it increased 40% LAST YEAR!
Please save America congress and make a truly STIMULATING bill.
From Renee, Tampa , FL As I understand this bill they are trying to pass as described by a gentleman holding a loan workshop at the SBDIC here in Tampa, it benefits VERY FEW. Aside from LOANING 35K to help small business pay existing debt, it is only available through the SBA loan program that falls under the category of MicroLoans. The only institution within a 100 mile radius that is an SBA MicroLoan lender is a small commercial lending institution in Clearwater- in another county. Guess what, your biz is not in the county as the lender- no loan for you.(think Seinfeld episode,'No soup for you') Another nothing offer from the fine folks in the whitehouse.
From Stacey, New York, NY Where is the capital that small businesses need to keep afloat. I have a cafe in the wall street area and the residential condos came in and the commercial residents moved out. That does not help my business and since I have no loans to repay, what help will I get to pay my rent and utilities and payroll? I am completely left out of the stimulus plan.
From Brian, Chattanooga TN We can't afford to repay the small business loan we have, let alone borrow more money. This plan is for a business still in good shape, not those really struggling.
From Bryan Stevens, Avon, Ohio My understanding is that the program will provide loans to both non-SBA and SBA Borrowers. The program was designed to assist more SBA Borrowers since most SBA loans are sold in the secondary market and banks are unwilling to unable to go back to these markets to restructure.
Also, many SBA national lenders have closed their doors because their lines of credit for lending were pulled by investors. Once that happened, they stopped lending or closed their doors. Lenders like, Business Loan Express, Business Lenders, SBLS, UPS Capital, Comerica, Banco Popular etc… These lenders no longer not provide any SBA funding. They are also not very cooperative in working out restructured loan payments.
From audrey palm bay, florida I think reducing the tax rate for a year for small business would have been helpful. Also, to make funds more redily avaialable. SBA loans take alot of time. I own 2 small businesses and its hard enough to take care of my personal finances & responsibilities, let alone to have time to sit down and apply thru tons of paperwork for a loan.
From Jim Cherry Valley, NY I wish the stimulus would have reduced the tax rate small businesses have to pay both state and federal.
From Duane Mensinger, Soquel, CA I would prefer a program that directly reduces payroll taxes. No time consuming efforts applying for loans with banks and easy to implement and track. A simple reduction in the FICA and Medicare rates would be very helpful. Additionally, further reductions for money spent on health insurance premiums would also be welcome. Once again, just administer this by reducing the payroll tax monies the employer must withhold.
From Anacortes Wa I am a small business owner and we would use this type of assistance to help us stabalise our business.
Thanks.
Louis Koffron Washington State
From Bryan Stevens, Avon, Ohio Many of us our very unhappy with this bill, specifically on what it does do for small business – give them capital. I have started a non-profit group to raise money from small businesses to lobby Congress and the Administration as one voice.
Nobody – and I mean nobody supports small business's in need of capital. Let's get focused on getting government to understand that small business is the answer to this economic downturn – but we need capital to pay employees, buy supplies and market our services. The banks are hoarding their TARP funds and we need to get access to capital.
Only $35,000 – that's a joke. Our group calls on Congress daily and we are trying to work with the SBA but we need help. This will not get fixed until small businesses interested in access to capital find a voice in Washington. If interested, get back to me on our e-mail and we can help.
Our business is working with a number of small businesses in restructuring their bank loans. I know how difficult this time is, so if you want help contact us. I am a small business owner and previous SBA lender – we know how to get things down. Contact us at:
bstevens@businessborrowersalliance.org
From Debbie Burns, East Haven, CT As a commercial real estate paralegal,doing more SBA loans will hopefully increase my workload and then I wont have to worry as much about getting laid off for lack of work.
From Pete Glennon, Greenville SC It's for small businesses that have bank loans, not SBA loans, the way I read it. But $35K is not much.
From Bill Uhler As owners of two small franchise stores we struggle daily to meet financial commitments; habitually in arears with our creditors.
We were only a year away from repaying two five-year bank loans when we went into the worst economic climate (almost half of average historical sales) since we started in November of '04.
There is no question that the BSP, as described, will allow us to even out our cash flow and afford us the time to take other positive steps to improve our businesses as well.
Our interpretation is that the pre-requisite is to have an existing bank loan in place, not necessarily an SBA loan.
We have our own substantially invested equity at stake, both in sweat and dollars and can now see a way of at least surviving the gauntlet if not actually seeing a return on that investment.
From Nicholas Puleo $800 billion to create (or "save") 3-4 million jobs? ARE YOU KIDDING?! Get the banks to release the money they've already been given, and 5 million small businesses will create 5-10 million new jobs!
From DAWN DECUIR NO IT LOOKS LIKE IT'S MORE OF THE SAME AS FAR AS WHO GETS FUNDING FOR A SMALL BUSINESS LOAN OR HELP. HOW ABOUT THE PEOPLE WHO WANT TO START A SMALL BUSINESS AND ARE DOWN AND OUT BUT WOULD BE WILLING TO WORK 24/7 TO GET A SMALL BUSINESS OFF AND RUNNING.
From Richard L. Ray So much for change we can believe in. So this program will only help those business who already have SBA loans. Our bank hasn't issued SBA loans in over two years. Too much paperwork and too much risk for them. So our business is financed with our savings, tax refunds, and credit card debt. The feds are telling small business owners like us to go pound sand, while they give billions to companies whose leaders have failed them. We would love to lower our interest rates and consolidate our loans. But with this program, we're thrown under the bus again. I wonder what palms must be greased to ensure folks like us (and there are a lot of us) get some help, too?
From Steve Tanner, Ben Lomond, CA I see there is much debate over this stimulus bill, and much doubt that it actually will help small businesses. Would any of you be willing to speak with me (I'm a business journalist) for an upcoming story? I'm curious to hear from small business owners about how the stimulus will (or will not) help their organization.
-Steve Tanner,
Editor, California Executive
stanner@provpubs.com
From paul daniels new york ny this is just another program that is going to be filled with fraud and deceit, these programs will just allow the system to be cheated. basically I can take a loan to pay my interest and debt and pocket the money and go out of business and in return I owe nothing the government will be left paying off my debt
From Karl Etzel, San Jose CA I love how the SBA loans will only be for those who already have debt. I guess I was stupid to try to build a business without lots of leverage. I used my own money and as a reward, I can't get help from SBA. This is another great example of government helping those who have already gotten in trouble while turning a blind eye to people who were trying to play it safe & be conservative in the first place.
From Eugene, Grinnell, Iowa The majority are already saddled with debt. The real help comes when individuals are relieved from their debt and the stimulas will not accomplish this. The stimulas requires a deepening debt burden. We are in an imploding pyrimid where we are failing to dispurse currency into the economy through new debt which is required to supply currency needed to satisfy older debt interest. The bottom blocks of the pyrimid have failed to materialize so now the whole thing is falling down.
From Tom Manhattan KS Define "small business"! Those businesses whose volume is around a million and whose labor pool was around 100 can shrink, retool, and survive, even grow coming out of the "recession". Family businesses will have a tougher time. The one to two full time employees can't be downsized. The "incentives" often don't fit. The taxable income already is little or non-existent so the tax breaks don't help. The debt service is already hard to deal with so borrowing more is not an option. Now that's small business! The major tax payments are FICA and Medicare payments. These aren't being reduced and there is no real effort to remedy the crises there. We can pay 25% to 30% of our income in taxes without paying income taxes.
From Angie M., Omaha, NE Can someone explain to me how helping convicts and people who've never worked is somehow going to make me more willing to hire them for a measly tax credit? There are millions of hard-working people out there who have lost their jobs, but now I'm suppose to hire the ones that never worked to get a tax credit? I guess those hard-working people who have been wronged by our government don't matter!
This package will do nothing for my business. I'm going to tightened up even more, lay-off more workers and stop making capital purchases for fear that I won't be able to pay for the tax increases that are surely to follow since I'm now the enemy. I used to be the contributing American who employed people. Now I'm the jerk who should feel obligated to give it to all the deadbeats!
From Paul G granada Hills Cal This isn't an economic stimulus program…it's stimulus mainly for "social programs" I see little or NO help for small businesses. I own a high tech machine shop and am a "critical supplier" for JPL among others. My company has shrunk from 20 employees down to 7 and would be even smaller if I hadn't cut my own salary to under 40K for the past 3 years. Every year I get increases in permits and fees. My hazardous waste facility generator fee has gone from about 200.00 /year to more then 5000.00 per year !!! This inspection is a 10 minute walk thru once per year !! Every time I turn around another Govt. agency has their hand deeper in my pocket.
I expect to see little or no help from the Obama administration. As always it will be the small businesses that suffer the most. We can only survive by our ingenuity and becoming more efficient, but there's a limit to what we can do.
From Bill Corrick Give every small business that made profits for the last ten years an paid taxes to the government a reward during this bad economic times caused by the politicians. 10% of all taxes paid to the government for those ten years, paid back to the businesses that EARNED it.
From Pete Glennon, Greenville SC I think that having the banks involved is the most prudent way to loan. They are the ones charged with knowing the business, the people behind it and can gauge the prospects of the turnaround most accurately. So, there should be no by-passing of this step such as government direct lending.
There should be no "rules" that the banks loan the money either. Otherwise you'll get into another bad loan situation.
The banks have a problem with SBA loans mainly because of the paperwork involved. It's a hassle. But in times like this it's the only way some banks will loan. So I suggest that the fed reduce whatever costs there are to guarantee the loans and also increase the percentage of guarantee. If the banks do their jobs, and as long as they're on the hook for some of the bad debt, then everyone should benefit. But we sure don't want what happened to the mortgage market to happen with SBA loans.
From Essy Houston Texas how will this bill help small business owners with bad credit, obtain a loan from SBA?. These have been a problem anyway. I think they should not consider this anymore and decide this with years in business. Besides, the banks play God in decision making on minority stepping into the bank for loan processing.
From Michael Hose Bridgeton Missouri So let me get this right? The bill will include 20 plus million to market and administer a micro loan program
that in turn will loan out 20 million.There's your sign!
From Jeff McLeod, St. Clair, MI. 48079 This is another case of the Government telling the people what to think. When the depression was over, there wasn`t a single job more in the private sector than before the Government stepped in. You cannot spend your way out of debt. This is just another Government money grab that the people outside of the Gov. will have to pay for. We small business`s always get the bill. Down to 1 employee from 5
From Patrick Hughes , Knoxville TN I've always been a fan of zombie movies. This president and congress remind me of those dreaded zombies….they multiply and multiply until we're so outnumbered that we are doomed! Sad part about it this is no movie. The so called "stimulus" is really a deadly virus, ending life as we know it, unless one can out run the zombies. Doubtful at this point.
From Don, Punta Gorda, FL The stimulus plan would better serve small business by providing capital directly to community banks where all funds would be required to go to the expansion and creation of new business opportunities.
From Marjorie, Mesa Arizona The Stimulus will not help (True) small business owners. The criteria and regulations they set up won't apply the funds in the area's that truly need the funding. It will only assist businesses that truly don't need the stimulus. Small business owners with large liquid assets and high fico's etc will be the one's getting access to the funding.
SBA have their picks on which small businesses they guarantee and those are not the one's that truly need it.
I had a high 700 fico and my husband had and 800 fico with $75k in equity and still couldn't get a loan. We then sold our home paid off all debts then used the remaining funds to inject into our small business. Then what do you know the worlds finances collided.
In order for small business to actually be able to get assistance we should be allowed to submit a proposal, similiar to a response for a RFP (grant style), followed by other necessary docs to substantiate the injection and business uses. This would allow more small businesses to obtain the funding from the stimulus.
I fly out of State to assist with the catastrophes and the same small businesses that was hurting when it happened is the same ones that are hurting now. Why didn't the SBA step up then?
Then you'll see a difference in communities and economy.
From Ian, Fresno California The only way to get small busines running again is to give it access to cash and orders. The goverments idea of using the SBA does not work as the banking industry is still relied on to make the loans and the SBA would guarantee them. Unfortunatly most peoples credit score is now well below what the banks require, So hence no loans will be made and the SBA will not have to guarantee anything. A better place to pump dollars, would have been the block grant program where no bank is involved in the loan. By giving business access to cash the cash will then filter through to the general public who will then start spending again, thus increasing the production requirements of small business. Surely this is better than giving the money to the banks for them to stockpile it in their vaults or hand it out to executives as lush trips or bonuses.
From Jay Atkinson Los Angeles CA Another fun fact is that now the National debt clock reads $10,776,500,000,000 almost 11 trillion dollars. Remember if you piled up one million dollars and filled a stadium with million piles then you have a trillion. So we are talking 11 stadiums here. The National debt clock says that that is about $35,000 per person. But my 10 years old doesn't work and is not going to do anything to pay that money back in the near future. It's up to me and other tax payers in the workforce. There are about 157,000,000 of us if there is no unemployment. My share of this debt that I need to pay back out of my wages is $68640. Unless of course someone is unemployed than it goes up. Now I can see how giving everyone in the workforce $5000 so that they could catch up their house payments and buy a little something may have helped the economy. But the approx. $7600 per work force member that they gave away last year didn't do anything. If they would have handed each workforce memeber the $7600 last year and now the $5000 this year, it may be that our economy would have improved ever so slightly at least on a personal level. But I am probably not looking att he big picture of keeping the insurance companies solvent.
From Jim R KC MO Remenber the NO CHILD LEFT BEHIND project? It has left us with a nation of average and below individuals compared to the rest of the world as a whole. The Stimulas Package will have the same effect over time. Those who work hard everyday and seek growth with their business are pentalized agin with significant tax releif no where in sight.
From Lana K. Kewaskum, WI Does anyone really READ these comments and take them to heart or think about how seriously in trouble small business is becoming? Does our government REALLY care about small business or are they just putting on a good face to make us THINK someone cares? Goodness knows, in my area I can only think of one politician who seems to care. In my over fifty years living in my community I have seen one small business after another fall by the wayside because of high taxes and because they cannot compete with the WalMarts of this country. Politicians don't really care about their survival because small business can't afford to offer them enough TO care. Does government care enough to offer low-interest loans and some type of withholding tax break to a (now) high-risk business? Don't count on it! I worked my entire life to keep the business that has been in our family nearly 100 years above water with absolutely NO HELP or handouts or bailouts from my government other than to let me know HOW MUCH and when my taxes were due. Is it any wonder small business has NO FAITH in our system? Why would any small business believe that their government actually cares about them now???
From Jay Atkinson Los Angeles CA The 2000 census said that there were 105,480,101 households in the US. Now if we allow for a 15% growth rate, there are approximately 121,302,116 households in the US today. The stimulus package of 787 billion equates to spending of $6488 per household. The average taxpayer will receive approximately $400 of this amount. Who is the name on the check for the $6088 difference? Is it too late to contribute to the Obama for president deal and get my name on the check? Will changing my registration to a democrat help? I now willing to blame all of our problems on Bush, now can I have some?? I don't even need the full $6088, just enough to make this month house payment would help. But I understand that giving Billions of dollars to major banks and insurance companies is more important. And I do look forward to having a monorail from LA to Las Vegas.
From Anonymous How stupid can you be. The Buisness that are struggling not because they cant get there hands on money. Its that no one is buying anything.
From Joann, Atlanta GA I am a small business owner who needs a loan NOW! I have excellent personal and business credit. So the question is, when will this money be available and who has the say on who gets it? Still looks like it is up to the underwriters to play god!!
From Ex Republican Bush & Republicans bankrupted the U.S. so don't try to rewrite history. You called Bush a commie?
From Moleman Seattle, WA Where the hell has all the outrage been during the worst years ever … the Bush years!
From anonymous, Wash., DC This pork bill is an obama-nation of the first magnatude. Ya gotta give credit to the commies, tho, they sure know how to pull the wool over the American public's eyes. They've been planning to undermine the US since the 50's, and with Obama and the leftist politicians in power, they now have established a beachhead from which to wreck havoc with America's future. Obama and his Marxist buddies want this to fail and bring down our country. The Perfect Storm is upon us.
From Daryl Dow Hunlock Creek Pa. The only thing this bill will help are the people that don't want to work and special intrest.What about us people who have always worked and paid our bills the ones that lived within our means.Increase the pell grant give me a break the only people who get that are the ones that don't work.Hey Mr. President when are you going to do something for the tax payer?
From Christine Janssen, New York, NY Isn't it so sad that that's the hard truth? How on earth are we supposed to be world leaders and innovators when our own gov't suffocates us? we are no longer positioned to be a superpower. some other country is going to 'get it' and leave us in the dust. makes you want to move somewhere else, doesn't it?
From PJ, NYC oh but Republicans have done such a great job over the past 8 yrs. ??? lose the bad attitude, bitterness, and finger pointing. having an "us vs. them" mentality is not going to help us progress…
From roland saczek,rockwall tx my wife and I own and operate a beauty salon and prof. retail establishment for the past 30 years.Initial bankloans timely paid off,subsequent store renovations paid with profits made by the company.I always thought that there is no difference in this regard between small and big companies. Unfortunately that is not the case.Look at the finacials of one of the bigger names in this industry.
Several hundred stores in operation,dismal performance,5 years listed on wallstreet,no dividents paid to stockholders,shares down 60% plus but planning another 200 stores in the near future.Unless an excisting business can prove profitability there should be no consideration for expansion.In the retail business ,predatory pricing would be eliminated,stores would operate for profit and be able to hire people.This has not been the case and is the root of the current situation.But then again nothing is going to change ,in a few years this mess will be forgotten .Small business,look over your shoulder,the big guys are going to get the real stimulus.
From Anonymous These guys in Congress are absolutely clueless about business. Where is small business tax relief? What they have done will eventually weaken the economy even more! Make money easily available through the SBA is good, but this is the same route Fannie and Freddie went by making money available to people who should not be in business. Banks won't care because the SBA is guaranteeing the loan. Did anybody pay attention in Congress. The incompetence of these people is stunning. I would like those guys to try and go out and make a living on their own. Not many of them would survive.
I have a restaurant and employ 62 families and i say families because not just the employee but the family depends on me to make the right decisions. We have been in business for 21 years and will continue but every year the city, county, state and federal gov't takes a bigger chunk along with the every day cost of doing business. Small business needs immediate tax relief on every level and we need to pay less employment taxes and so do my employees. Any experienced small business owner that understands the simple accounting principles know more than all those MBA's and Attorney's in Congress and the White House. We have to succeed every day and they just need to make a stab at it….
From V.H.Zenke, Greensboro, NC The tax credit for investment in new equipment sounds good but they could have expanded that to business premise improvment to help small contractors. While the SBA loans are nice, most banks don't like doing them – we USED to be able to go to any bank and get a small, business loan; that was available anywhere. Now banks ONLY loan if you fill the three criteria of cash flow, credit score, and collateral. Now that cash flow is poor, and subsequently affecting credit scores, most people are left with collateral and the banks won't loan on that alone as they used to. Until that changes, we're stuck. I'm no communist or even mildly socialist, but if our leaders had been serious about quickly turning this situation around, they would have started mailing "stimulus" checks to every taxpayer every month until employment numbers improved. That money could be used to pay mortgages, car loans, credit cards, medical and education bills. A friend remarked that not everyone would be so responsible with that money, to which I reply, one could spend it on cheetos and beer or your local hooker and have a better, quicker turn-around for the economy than running this "stimulus" through the banks which got us so snarled up in the first place
From Alan David Howard I've been self employed since 1984. I've started several successful businesses from scratch. The greatest hurdles have been government interference,regulation and bank unwillingness to participate. Several times along the way the banks have nearly caused me to go out of business by, for no apparent reason, pulling my credit line or not granting loans they had agreed to fund that were cookie cutter examples of previous loans. I have no confidence in either government or banks to help us find our way out of this depression. Smaller, local banks might be useful, but we have grown the system out of control. Just look around. I have been on the regional board that approves small business loans and find that there is a link missing between the realities of small business and the desire of government to help. The entrepreneur is on his own and it is business, and government, as usual. Send me a million dollars and I can create 20 jobs tomorrow. I will be interested to see how many this multi billion dollar "sausage" will create in the next few years.
From Tom It's my understanding that unions comprise only 10% of the US workforce, but you blame them for 100% of the trouble we're in. That's not fair, reasonable or accurate.
From Ron Martin Are you kidding me? Is this all this cabinet can come up with or is there a reason they want to fail?
From JIMMIE W BECK If there is no job when the stimulus money runs out then this stumulus package is no more than a welfare program..Leaving Americans with a bigger debt to pay back. But if after the money is all gone there is a job supporting it self…well that would be creating jobs that produce taxes to pay back the debt…I DO NO THINK THIS STIULUIS PACKAGE IS GOING TO GIVE US THE BANG WE NEED. In my opinion what is need is a physicial product we can see and touch…sincerely j w beck
From Deborah Portales, Conroe, TX My husband is a dentist in a suburb of Houston. He employs nine people. We pay our bills on time. We pay an inordinate amount of taxes. We have not seen a benefit from ANY of the congressional rulings that have bailed out other businesses. Our 401ks are in the toilet. Our retirement accounts have lost tremendous value. All the while, banks and wall street types line their pockets with our hard-earned dollars.
I would just like to say this: IF my husband and I ran our business into the ground, who would bail us out? The answer? WE WOULD. We would take responsibility for ourselves. When we ran into hard times, we made sacrifices that helped our business. We stayed in our starter-home for twelve years, we drove ten year old cars. Now? We don't go out to eat very often. We live within our means. I fear that congress has forgotten the big picture. LIVE WITHIN YOUR MEANS.
We, as American citizens, have lost the ability to hold our government accountable. We can vote the representative out of office… But what will that accomplish? We'll replace him with another guy or gal who is also caught up in the rat race and unable to perform his or her duties due to the amount of red tape and bureaucratic bull-hockey.
This society, as a whole, is a consumer-driven society. We don't make anything. We don't build like we used to during the industrial revolution. Why is that? It's cheaper to make goods elsewhere and ship them here. How does that help us? Our GDP is out of whack. We cater to other countries and their trade agreements so that we can buy a piece of tin for a buck-fifty less?
American employees need to work for a realistic wage. Making $29.00/hour with just a high school diploma is ridiculous. It's embarrassing that unions have that type of leverage over a business. We need to bring industry BACK to the U.S.A. We need to offer incentives that help us BUILD things and keep our manufacturer's HERE.
Okay, that's all the time I have for today. I'm done with my morning coffee… Now, I'm off to pay my bills… on time.
From Chuck, Pittsburgh Once agin we have been sold down the river by our beloved congress. When are we going to get the nerve to vote them all out?????
From Roy Adaams-Wichita Falls Texas The SBA has been dead in my town for years. Banks won't even consider an SBA loan. People in Wichita Falls Texas have to go to Dallas. Once again, Wall Street gets everything and Main Street can go to whever they want.
Thanks for the change. I want my money back and Ken lewis jailed.
From T.Martin, Michigan It's too late for my parents. My dad is about to lose his 20 year business – a used car lot (after the factory he worked in for 25 years closed 20 years ago). He has paid all his bills and never been late on a payment, but the bank called the load due during this terrible economic time and no one will loan to him. Their retirement cabin was used as collateral and all of it will be gone (something they've worked their entire lives to retire to). My parents are both nearly 60 and my mom has to keep working now with my Dad out of work. It's absolutely trying on their 37 year marriage.
From Bette, Goodyear, AZ I don't think it goes far enough – especially SBA loans. They should have increased the loan amounts to $10M and allowed refinancing. Better yet, they should authorize the SBA Disaster Loan Program just like Bush did after 9-11
From Anonymous The stimulus will not work!!! It is a total waste of our money.
From gt only a failing small business would borrow money with absolutely no clarity for the forseeable future
From Anonymous I agree with Chuck. Small businesses are not always associated with SBA. This stimulus addressed about the “capital gains” and I wonder who gets benefit with that point. These days in market sinking situation who has the capital gains? I don’t think in any way helpful for small business owners. In stimulus they did not address “Capital losses” where small business investors lost hundreds and thousands of $$s by investing long term. Did they hand pick the items where majority of people do not qualify for stimulus.
From Brent, Ferndale, Washington I just about fell off my "small business" chair when I read this. I guess I have more incentive to hire a "high school dropout" than an individual who put forth the effort to graduate with a diploma or a college degree!
Get rid of these BUMS! No wonder their approval rating is so low! Hurry before they COMPLETELY destroy our country!
From ricky mcelroy royston, ga due to all the greed going on. we are all now in a prison with out walls.
r mcelroy royston, ga
From Anonymous "businesses initiatives totals $730 million"
Wow, big freaking deal. Small business creates 70% of jobs, yet they are spending billions "stimulating" GE by spending our money on "green" initiatives.
How many BILLIONS did they waste on everyday budgetary items that have nothing to do with stimulating the economy, other than stimulating inflation.
But LESS THAN 0.01% of the bill is geared towards small business!!!
Instead our corrupt government bails out large inefficient companies because they donate large amounts of campaign cash, and give special mortgages and favors to those in congress.
Change you can Xerox.
From Fran, NC If the congress would have read this bill and studied over it, it would not have passed. Now, we are really in for a long economic downturn and it is going to take a long time to pay off Reid's "road to Vegas."
Where is the hope?
From Peach Reid, Fish Mart, CT This does zero for my samll business, with 35 employees, and I am barely making ends meet after 34 years in business. What could gov't do for me?
I import tropical fish, and fees to do so have gone from zero to $50K a year
for "inspections" that do nothing but feed another bureaucracy. That's a lot of guppies!
From Doug Jordan, Destin FL What about the SBA proposed cap on lending of 50% of goodwill or $250K, whichever is less? This change in "SOPs" is scheduled to take effect on March 1 and will offset any benefits described in your article. In effect, it will devastate a whole contingent of SBA lenders and small business acquisitions transactions – which will ADD to the job loss problem not help it. The new SOP needs to be stopped now! Otherwise this amounts to nothing more than doublespeak!
From Matthew Landing, Monroe NC Investing in the infrastructure is the only thing that will pull us out of a recession. Investing in the infrastructure will revitalize the economy by lowering unemployment which puts money in the pockets of those who work who in turn spend money on what they need (from the market.) The money spent will promote good business which the market wants. The market has spoken about housing. Investing in the housing market will end in failure. Invest in infrastructure and let the market speak for itself. How the market speaks is why businesses fail and the strong well managed survive. It's Econ101
From Davi Cole My husband and I own a small business that is failing. There is nothing in this bill that will save us. It is misleading to say that the SBA will back more loans, because there is not a bank that will intially lend the money regardless of the protections offered by the SBA. If there are bridge loans that will happen, I am sure that the true small business that need the brige loan will not get them. The funds will be eaten up by the larger small business that can afford to pay their team of accountant and lawyers to find the cash.
From Donald Garnett Ft. Worth, Texas I have a small Transportation business hauling freight otr 48 states. I would like a small business loan directly from the SBA. Not the banks. Third year in Trucking, also I have a Contract. So if there is no loan I need to sell my contract and do business in another industry. Need Gov. help.
From Anonymous how can this not be good for small businesses? there are so many provisions that encourage wall street to invest in main street. as long as these investors aren't greedy and looking to make a quick buck, it's good for everyone involved.
From Chuck Tefer, Freeport, ME No! the Stimulus package will not help most small business. The assumption is made that if you are a small business that you have SBA ties or loans which is not true. We are having to survive by tapping into IRA's and 401K's to weather the lost of busniess.
I am not sure what can be done for small business by the government.
From Jane Woodstock, GA This is not going to help the small business owner. It has just enough so that the average person can say yes the small business owner is getting helped – compared to what he has GIVEN to the large corporation this is an insult. Yes, better than he has done for others – his famous CHANGE – wonder when that is actually going to happen?
Seems to be politics as usual – nothing to help those that actually will get stuck paying for this in the long run. I would like to ask him if he HONESTLY believes that the American people are stupid.
From Wayne Lake, Corinth, NY "…through community groups." Does this mean only people affiliated with Acorn (and similar groups)will receive loans? Can "conservatives" get some of that?
From Bob Jensen, Blue Bell PA The difficulty, of course, is that while the money may make it to the banks, they decide how to use it and, as we all know, executive bonuses come first. Same old same old.
From nick shield, honolulu, hi the title of this piece tells of the problems with this country and it's people – what's in it for me? is all we care about. a more careful and concerned writer would have focused on if this is good for the country? but this would tell of an america that is no more
From Mike, St. Louis, Mo I'm struggling to see how this will help our small business or most others I know. We don't need a loan or to take on even more debt. What we need is a reduction in taxes (on all levels), a way to offer affordable insurance to employees, and less mandatory reporting paperwork from various governmental agencies.
We need to be able to keep what little money we make instead of being nickeled and dimed to death.
From Jackie, Dallas TX I'm sorry, but will someone please explain to me why is essential that banks be able to package their loans? Before all this loan packaging and selling of loan assets around and around, didn't we have a more stable loan environment? My mortgage, a VA-backed 30 year mortgage at 7.25% changed hands five times before settling at Countrywide.
I seem to remember in my younger days that when you went to the bank for a loan, you paid that loan off at that bank. Perhaps if banks were not so eager to make extra profits off of something they are already making profits off of (after all, that's what the interest is), this mess wouldn't be as bad as it is. If the banks were required to keep those loans on their books, at least for several years, they wouldn't be so eager to lend to unqualified borrowers. When I got my mortgage loan, I went through third-degree questioning over a late payment to a department store; I think that if they lightened up on well-secured loans and kept them on their books, and got out of the business of gambling, some of the banking crisis would stablize and dissipate.
From john verplank Running a business is too much work because of the government. You work your ass off and then you pay it all to either the government or an insurance company. if you don't follow the rules, you can make enough money to eat and pay mortgage, if you follow the rules all the money goes to the government. seriously, between the unemployment taxes, federal taxes, state taxes, medicare, social security, sales taxes…and those are just the ones you've heard of. if you make a profit that is taxed. stay away from owning your own business, unless you want to be a government slave.
From Arman Tagarro, Minneapolis, MN If Nydia Velázquez says that small businesses have “led us out of previous economic downturns”, then why is only eight ten thousandths of a percent of the stimulus bill going to the small business microloan program? That’s like benching the star quarterback when you’re behind in the Super Bowl. I’d also like authors of this bill to explain to the American People why they need $24 million to “market and manage” a paltry $6 million dollar addition to this program.
From Susie, San Clemente, California PS…Lend directly to the people and forget the middleman, the lenders who have robbed the AMerican people for years.
The hope of small enterprise bringing our economy out of this…is pie in the sky…after we are taxed to death and cannot get money for our businesses while the banks are raising interest rates and paying huge salaries to the CEO's…someone up there is on glue or smoking something they shouldn't be.
From Andres, Franklin Lakes NJ It's going to destroy the economy even more. What I hate the the most are democrats because they don't know what they're doing.
From Christina, Wake Forest, NC Too bad the "new authority within the SBA to make direct loans to small businesses repeatedly turned down by the banks" was not included. Banks are the ones with all the troubles and it has made borrowing money even harder as they are more skeptical of new start-ups. This measure, I think, would have made a more significant impact.
From Susie, San Clemente, California Not one bit. It's all just garbage and anyone who has applied for an SBA better have a lot of staying power because it takes months to get loans approved…by that time you're out of business or bankrupt.
This whole Stimulus Plan is just a farce.
From Chuck Miller – Orange, CA I have been in small business for over 40 years and have been through major ups and downs. In my experience the only thing that turns it around for small business is re establishing confidence in our country. All of us in small business are used to sticking our necks out but we won't if we are not confident. Give us confidence and we'll do the rest. We always have, always will.
From jim,hart,mi I would have hoped they would have looked at oferring 30 year fixed loans on comercial property vs only 15 year which would lower monthly payments for small business owner.Also offer a equity loan on comercial property like you can get on your home.
From Brookfield, CT I have a small company that builds swimming pools in the Northeast, no one is purchasing swimming pools right now and the stiulus isn't going to help. I have no work or income comming in. I need a stimulas that will get the consumer spending again!
From Terry, Eden Prairie, MN This is a joke when the majority of businesses in the USA are small businesses and the fear created by the Dem's and President have locked up everyone from purchasing any hardware, machinery or services. They are hoarding their money while small businesses suffer and lay off people and cut employees pay. A give-away for Dem special interests and screw the small business owners and employees of those businesses.
From Jeremy, Lake Geneva, WI One of the things this article leaves out is HOW TO APPLY FOR THESE LOANS?????
From Washington DC Why does the bill give people money for hiring people without high school degrees instead of giving money for hiring any unemployed person? I don't understand why those who are less qualified should be preferentially hired.
From Ken Nungesser, Lancaster Ohio All businesses could thrive. But not with unions running everything. they are one of the big reasons we are where we are now. Look what they did to the big 3. Unions are nothing more than a political tool for big government. Disband ALL of them. We would be better off.
From T Oldiges cleves, ohio Small business would have churned money through the economy and job markets within 30 days. Its a lousy deal for all of the struggling small owners who are trying to make it through the next 90-180 days. 35,000 sba guarratee's isn't going to get it.This bill won't stimulate anything in time to help those of us who really produce the jobs. Imagine a small business owner with 1 million in debt could get enough to make 1 payment and half a payroll. They don't understand how the real people make a living and they never will.
From John, California 724 million for small business out of 1.5 trillion so far in stimulus plus bailouts. Obviously not a huge concern for either past or present administrations. Or congress either I suppose, they were very active negotiating this stimulus bill.
From Joe the American What does a small business get that makes a profit and is run correctly? This whole bailout only rewards businesses and individuals that have failed! I pay my bills and my mortgage on time. I beleive I am being discriminated against since I am not recieving a lower interest rate or business help.
Sincerely, Joe the Small business owner and responsible American.
From susan, washington, dc This is redistribution of income at it's most blatant, and the same strategy that got us into the mess we're in now. Obama wants to keep giving money and guaranteeing loans for people who will default on them in large numbers, leaving the taxpayers with the bill again. And how about offering tax credits to hire people who played by the rules, stayed in school and have steadily worked and upheld their responsibilities? Should dropouts who don't attend school or work get preference for jobs over people who actually know how to read, write and come to work on time. WAKE UP AMERICA, Yes, he plays basketball and the kids are cute, but wake up. This is the greatest theft of working people and their children that has ever been carried out.
From Christine Janssen, New York, NY While it's nice to see that more details of the stimulus package are being disclosed, I'm still concerned about the overall health and abilities of the SBA. This organization needs an overhaul of its own.
And if it takes 6-12 months for a small biz owner to receive a loan or any other type of financial assistance through the SBA (as has been typical), what's the point?
Again, this is a good start, but I'd like to see more specifics on how – and how quickly – real money will get into the hands of small business owners. Otherwise all these pie-in-the-sky ideas will remain just that.
From Paul, Albany, NY Unfortunately, I don't see this helping nearly as much as promised, or closely worded to imply that it will help the small business. As long as government is part of the equation, a mess will soon be evident. Just give it time, the money will be too little to help the majority that needs the help, and the paperwork will slow down the process that a bankruptcy will be completed before the SBA is able to make a decision on whether or not a loan is approved.
Nope, this is just more smoke that those desperate enough to buy into the Obama plan will have to choke on believing it's better than it really is. Who really believed that a package of this magnitude and importance should have been forced down our throats in less than a month. His plan stinks of pork and payback, and it's not about the small business, the working middle class, or the future of our great country. It's about making sure the rich maintain their status, the middle class remains too far away to attain the status, and the poor have no reason to want to find work and pay taxes.
P.Painter
From Jeff, Atlanta, GA I must say that as a new Service Disabled Veteran Owned Small Business in an SBA approved HUB-Zone, I am in a prime location to provide jobs and help boost the economy. The problem is that the banks I have appraoched are twiddling their thumbs, waiting for this stimulus package to be approved before they'll even attempt a loan for a new company. I understand risk… but is the risk of not lending to small business greater than lending, which in turn creates jobs and puts money back into the economy. This stimulus plan should have "directly" influenced banks into making loans such as these versus indirectly. Now it is all a waiting game… FOR EVERYONE! Who will make the first move? It should be the President! This is basic economics.
From Brunswick, GA I have a small tree farm in southeast Georgia . Planted trees, but have no buyers now. Had to sell land to buy, plant and maintain trees. Now owe capital gains tax and still have not sold trees. Am out of money and owe everyone as I struggle to maintain during this slow period. Need help this year with the taxes that are owed.
From ED B Moorpark, CA Banks still will drag their feet on SBA loans – Gov't needs to be more directly involved in the lending -
From Jeffrey Sander, Townville, SC This is a big waste. We are going down the wrong road. Get ready to start paying higher taxes soon!
Jeffrey Sander
From david, NJ LOL @ you Bush was the worst ever terrible. I'm not saying Obama is good. So far he has good ideas but the laws/bills he's passing are pretty bad, but i guess we'll see.
anyways its all about lobbying. LOBBYING FTL
From Clive, Richmond, VA If the general consensus agrees that small businesses are the backbone of the economy and that those businesses are the single most entiies to revitalize the present economic dilema, then why not increase the stimulative benefits to them.
From Bobby, New York, NY. Small Business is VITAL to rebuilding and sustaining a strong US economy. We can only hope they do a far better job with this bill than they did with the September 11th disaster SBA program where only eight percent of the aid found it's way to New York and Washington DC! $300 million to Dunkin Donuts? PLEASE tell me that FEMA and the SBA have learned from 9/11 & Katrina…
From Jerry Antonatos, Orlando, FL This bill brings millions of dollars to small business in a game that is played with billions of dollars. These proposals are way to small to a sector that generates 80 % of this country's economy. The attention is too focused on "Big business" instead of "small business". The impact will also be felt much faster and with an equal distribution through out this country in the form of economic stimulus and job growth. With out any real focus to small businesses, the economy will remain in a recession.
From Joel Silverstein, Lake Havasu, AZ It seems the programs for small business still revolves around the SBA loan and micro loan. These are not loans from the SBA but from banks that have the loan guaranteed but the SBA. Considering that most troubled businesses have trashed their credit ratings in the last 12 months most will be hard pressed to qualify for an SBA loan. The result is those SBA guarantees will be issued to favored bank customers whether they need the boost or not.
From Chuck Brooks Detroit Michigan The banks are not truthful at all:
I applied for a bank loan through Chase bank in June of 2008. They are not truthful at all…..
They have not been honest (at least not with me) my reasons are explained below.
The truth is the truth & a lie is a lie, yes they all looked good during the luncheon, the awards ceremony, all of the presentations about how they were going to help the businesses in Michigan
I simply can’t believe that they put on these events and simply treat people the way that they do. I know that everyone that requests a loan from them will not qualify…. every request will be different
Plain and simple they NEVER considered our loan request… The banker even “forgot” that he had even setup the first meeting with me at the bank to present the loan package to him. I had everything ready.
Well, he finally called me last week (8 months later) and he gave me alot of song & dance as to why we did not get the loan (I met with him in June, and I am just now hearing from him almost a year later.
None of reasons that he gave, which I do not believe simply for the following reasons
1. My personal credit was never checked by Chase bank (which is pretty good)
2. My business credit was never checked by Chase bank (which is also pretty good)
3. At the time of the loan application, I had over $100,000 (our own money) in the bank of which I was will to put $98,800 down as an equity investment for the loan
4. Our company receipts showed positive increases: 2005= $133,186.00, 2006= $295,521.00, 2007= $650,579
5. We are located in the heart of “the empowerment zone”
6. we had over $1,000,000 in collateral that we were willing to put up as a last resort to secure the loan
7. The debt that we had was less than 10% of the requested loan amount
8. We have a solid & honest business plan (you have a copy of it)
9. Even if we did not “qualify” for the $988,000 as they said, well what did we qualify for….. they never even told us
10. Even with the economy in the shape that it is in, we are still doing very well
Thank you in advance
Chuck
Unique Construction Company
http://www.uniqueconstructionco.com
Be Blessed!
From Paul O. , NJ As a 17 year, white male, non-veteran, non-disabled, small business owner I cannot begin to tell you how disappointed I am with these proposal stimulus items for small business. First of all, the SBA has failed in it's ongoing mission to truly back, support, and implement all of its critical mission statement objectives and goals and will continue to be a drain of taxpayer money's for years to come. Secondly, the requirements to be approved for a loan, like the ones mentioned in your article, have made the small business owner shy away versus the incentive to come in, fill-out all necessary paperwork, to only be shot down because the bank requires more than the SBA will ever require to lend money. Finally, if our leaders who decide what get's into the small business stimulus package ever even owned their own small business versus being granted the money from their rich mom's and dad's before them, they would begin to truly see that small businesses need payroll money more than anything else to survive. This is not what the banks nor the SBA want to hear even though it is the truth across our small business landscape here in the US.
From Pete Florida Where was SBA when I neede them during a disaster in Florida.
HIDING that's where.
Hiding behind WOMO business protocalls.
They said My debt to income ratio was too high and my credit card debt was too high.
NO KIDDING, it was what I was living on After The FEDS declared Central Florida a disaster area.
I had no debt before I applied and it took 3 months to get an answer from SBA.
By then I was in the toilet with credit.
My fault I guess.
From Eric LI, NY It looks like the banking lobby had their hands in this policy. The SBA should be able to directly loan the money. I don't believe the proposal set forth in the article will help free up credit or help small business at all. The only people this would help are the healthy small businesses and not the ones struggling that need the relief. Angel investors who reap the benefits of other hard work will make out like bandits.
From Monika, Rocky Mount, NC It doesn't matter how much money stimulus package offers for small business as long as we have free trade agreement with China.
Small business offers quality products, but at a higher price. The current economical trend is to off-shore workforce to India or export production factories to China. This means more people are out of work, less people will purchase quality products, as their priority will focus on food or other necessary products.
Even food is imported from China and all that together is putting more businesses out of business.
The bottom line – if business doesn't sell, the loan will not help and will not be paid back.
It's time to go to the ROOT of the problem – IMPORT is higher than EXPORT. Canceling CAFTA and canceling tax break for off-shoring workforce, will force companies to bring production back to US and higher more people. If we add tax breaks for expending in US and hiring American workers, that will stimulate economy better than any other stimulus package.
From Gary Heath, Aptos, California As a small business owner I imagine it will help some, however, not me. The bill as a whole is a joke. With the amount we are spending we could have directly funded four million $50,0000 per year jobs for 4 years. Do the math. Our legislators ripped us off on this one.
From Rick McKenna, Winchester, MA Forget the review process, this faux Stimulus package is typical of the out-of-touch & selfishness of politicians. Term limits work for the Office of the President. Time now for Congress. Small business owners and consumers are starving for some positive economic news that will motiviate spending, and hiring. Why the income limits on incentives to buying a primary residence? Why so little spending in '09 on infrastucture? Why the class warfare on tax breaks? Those who are financially successful will spend if they are encouraged. A big loud Duh to Congress. And President Obama, this is your chance to make history for you, the nation and the world. Don't let these Congressional nitwits continue their tired old ways. Plenty to blame on the previous administration but it's time for Pelosi, Reid and Frank to go far, far away.
From Jim, Cambridge, Ohio The SBA initiative should have been the forefront of the economic stimulus plan, as most jobs are provided by small businesses.
Instead we are talking about millions allocated across this country for the SBA programs, instead of the billions that should have been allocated.
This drop in a bucket wont put out the fire burning a hole in the economy.
From nate, UK wow…the American people have been hoodwinked by the new 'Democratic' party. We thought Obama offered hope. I'll take Bushy's economics any day over this bag of tricks.
From Jerrry Harnish,Tacoma, WA I've owned my business for almost 36 years. To increase stability in our economic system, I would like to see a laddered approach to capital gain. For example, if you sell an asset with-in one year, you pay 60% gain, up to 5 years 40%, 10 years, 30%, 20 years 10%,
after 20 years 5%.
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We have a business loan with Banco Popular. They have called in our loan even though they verbally agreed to other terms. How can we find out how much stimulus money they received? Since the stimulus money is our tax dollars at work, can small businesses in debt to this bank band together and do anything?