Tag: SBA

Instead of wringing our hands and exchanging insults and blame —

We should be, getting up to speed on,

How the Republicans Keep putting the Brakes on Progress!

For Example:

Republicans block small business plan in Senate

Donna Smith, Reuters – Jul 29 2010

Obama has been pushing for passage of the lending measure arguing that getting more capital into the hands of independent community bankers would lead to more small business loans. It is supported by independent bankers and business groups.

Since the 2008 financial crisis, small businesses have found it difficult to obtain loans that would help them expand as the economy recovers from the recession.

[…]

Senate Republicans blocked a $30-billion plan to help community banks boost lending to small businesses […]

Some Republicans have cast the small-business proposal as part of what they consider government overreach by the Obama administration.

Huh?  

Helping Small Businesses to put people back to work — that’s government overreach?

On what planet?

The USA:

Jobs: Small Business Loans Are The Mountain Blocking Economic Recovery

Phillip Williams — Apr 17, 2010

Why Small Business Loans Are Important

The economy has lost 8.4 million jobs since the start of the recession. Small businesses employ the majority of the American workforce, although the largest single employer is still the federal government.

When the economy starts to recover small businesses rely on loans to bring up their inventory levels. Large banks and smaller institutions have been reluctant to introduce new loans after the failure of a large number banking institutions.

Small banks do not have the resources to start lending again, and the number of new loans have gone down since the start of the recession.

Banks that received funds from the Troubled Asset Relief program. The larger banks that were branded as too big to fail have also reduced the number of new loans they make to small businesses. They have reinvested the funds in lower-return, lower-risk treasury bonds instead.