Is the 30 billion dollar small business stimulus another Obama failure before it has even started?
(AP) NEW YORK - President Barack Obama’s $30 billion small community business lending program faces one big challenge: many of the community banks and businesses it’s supposed to help don’t want it. The lending program is part of a bill that passed the House of Representatives on Thursday and now awaits the president’s signature. The legislation contains a mix of tax cuts and credits aimed at helping small businesses. The centerpiece of the bill is an effort to make billions of dollars available to community banks for loans to small businesses. It seems like a simple effort to unclog a credit pipeline that has been blocked since the financial meltdown two years ago. But interviews with seven community bankers, as well as small business owners, show a reluctance to participate. "People in my constituency can’t get credit, and this will get money out to small businesses, who are the engine of job creation for this country," said Republican Sen. George LeMieux of Florida, who co-authored the amendment that created the lending program. Bank executives say their customers don’t want loans, even at low interest rates, because the sluggish economy has chilled expansion plans. Some say the federal money isn’t worth it because they fear it will come with too much regulatory oversight. "We have taken a strategic decision not to have our primary regulator, the government, also be a partner in our bank," said William Chase Jr., CEO of Triumph Bank in Memphis. Chase said the bank already has enough capital to meet the paltry demand for loans. "Our business customers are mired in uncertainty and are reluctant to invest in their businesses," Chase said. Ninety-one percent of small business owners surveyed in August by the National Federation of Independent Business (NFIB) said all their credit needs were met. Only 4 percent cited a lack of financing as their top business problem. Plans for capital spending were at a 35-year low. Jack Rajala just laughs when asked if he wants to take out a loan today. He’s in a fight to save his family’s lumber business that has been buffeted by the recession and housing meltdown. http://kstp.com/business/stories/S1759224.shtml?cat=1
Asked By: The Fed Up Matthew™ - 9/25/2010
Best Answer - Chosen by Asker
This answer should apply to all businesses. Why should any government money (taxpayers money) go towards stimulating any business? By pure definition a business is a a commercial organization designed and paid for by it's shareholders to produce and sell a product or service in order to make a profit. If the business... More
Answered By: sweetguy452003 - 9/27/2010
Additional Answers (12)
Just because a stimulus doesn't instantly fix everything does NOT put it in the "failed" category, contrary to your claims... More
Answered By: Proud Progressive - 9/25/2010
of course. Obama is spending more on afghanistan. which begs the question...which country is MORE important to him
Answered By: Dave87gn - 9/25/2010
If the banks he needs to implement it do not want it than yes, of course it is another bamboozle Obama corruption style, porkulus.
Answered By: Chin T - 9/25/2010
Of course, it has nothing to do with helping the economy or others - it is simply to advance control for the totalitarians... More
Answered By: rw113 - 9/25/2010
Probably like the $29-billion "teacher" money....that went into the Democrat slush fund!!!!!!!!! Scums!!!!!!!!
Answered By: Bonnie C - 9/25/2010
..."Barry Soetoro" (...you seem to know him by his political name, Obama) is a "Nanny State", tax and waste, entitlement PIMP ! (Period ! ...end of story)
Answered By: Mister Sardonakis - 9/25/2010
small business is not hiring as they do not know what obama will try to regulate next. small business will get hit the worst with the health care costs and taxes. they are not going to borrow or hire with this administration. large corporations are hoarding their profits and not hiring. they tried to tell this to... More
Answered By: judi999 - 9/25/2010
Answered By: whosudaddynow - 9/25/2010
You cannot borrow and spend to fix a decade or 2 of too much borrowing and spending. It's a failure
Answered By: JG - 9/25/2010
Name any other 'failures... More
Answered By: ndmagicman - 9/25/2010
There are a lot of hops in this bill that dictate who/what would be qualified to get a loan in the first place. Quotas for a loan program have never been a good idea. There are really only two types that would take advantage of this program at this time. Without knowing what your cost will be next year, only a foolish... More
Answered By: Parent - 9/25/2010
So the bill is law. 30 billion in loans, 12 billion in tax cuts. The hoped-for goal: to creat half a million jobs. Half a million. 42,000,000,000 / 500,000 That's $84,000 per job. If the bill hits its goal.
Answered By: B.Kevorkian - 9/28/2010
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