Why does Obama think that small businesses need to increase their debt?
He is urging banks to lend more to small business.
http://news.yahoo.com/s/ap/20091024/ap_on_go_pr_wh/us_obama_small_businesses
Government would help small business formation and survival a lot better if it cut out a lot of regulations.
For example, someone thinking about selling a few plants potted from their garden at at flea market would have to get a landscaping license from the state to be legal, and the cost of that yearly license fee would probably exceed the revenues of a casual seller.
Can you imagine someone trying to start a food business in their kitchen like Mrs. Fields did? Regulations would mean the hurdle of a big start up cost.
Or if people tried to sell apples and cherries from trees in their yard they would probably be fined.
Can you imagine Bill Gates wanting a Small Business Loan at the stage when he was still working in his garage?
Small businesses do not need loans until they have actually taken off, and it does not help the entrepreneur to push unnecessary borrowing on him.
Small Business Administration Loans are not cheap either. Oddly enough, the government tries to push those loans on people whose houses have suffered a weather disaster to use that money to rebuild.
And it helps neither the entrepreneur or the economy for General Loan Committees of banks to lower their standards
In as far as some businesses want to expand or refinance debt there ought to be credit available.
I think you are confusing consumer behavior with how capitalism is supposed to work.
In your world, we wouldn’t have had a credit crisis because no one should have been borrowing money anyway.
Small businesses have had credit lines wiped out or cut dramatically.
When so many others are running late on payments, it is a necessity.
He doesn’t but maybe he feels that funds should be available if small business needs it!
Why do cons always distort the facts?Like Bush kept us safe!Even though America suffered the worst terrorist attack ever because of his willful dereliction of duty until the attack!
He does not. Do you actually believe what you’ve posted, or are you a paid shill?
Small businesses need loans to expand, improve product, research, hire more help and a host of others things. People need loans to get a small business started. Corporations should not be the only businesses that can borrow money from a bank.*
you are correct the most profitable and consistantly growing small businesses are the ones with the least debt. smart small business owners will not be expanding through borrowed capital at least until the economy settles and they find out exactly how bad health care reform is going to effect their bottom line.
Obama is clueless about how any kind of business works. He has never even tried to start or operate any kind of business. A lifetime political hack who gave one good speech and all the Democrat’s fall to their knees and worship the guy…… Amazing. Any body’s better than Bush…Oh really!
Loans used to be underwritten by taking into consideration the business model, the character of the person seeking the loan, the perceivable ability of the entity to repay the loan on time. People used to start businesses on a shoestring as they say. If I wanted to start a handyman business I first have to buy a license and insurance. I have to take a test to qualify for the license even if I’ve been working in that business for years. We are so over regulated entrepreneurs, like I would be don’t go to work on their plans. I think a good example of this is the Ice road truckers show on the History Channel. When they showed the Canadian versions of it we saw the difficulties of driving on the ice road. When they showed the Alaskan version we saw that first the Canadian truckers we were used to watching drive over the ice road season after season apply for a license (nothing wrong with that part) pass a written test, pass a simulator test to qualify for a road test with a government tester who probably never drove 100 miles in a rig. In Canada they probably asked to see their license. Here we need an act of congress.
First the SBA does not think any whose annual Revenue is under $5 million is not a business, they are just bankruptcies waiting to happen.
To your question — Why does Obama demand that small businesses extend their debt — To do to all the Mom & Pops that he did to the big banks — to take them over and control how much they can be paid.
Remember Since Obama was an undergraduate his goal is the redistribution of wealth. He is a thief and he is proud of this.