There's just one little wrinkle to Barack Obama's $30 billion small-business loan program: Small businesses may not want loans, and small banks don't want to lend.
The bill, which has passed the House and now only needs Obama's signature to become a full-on law, would provide billions of dollars to local banks to help them loan more money to small businesses, and move the economy forward at least a little bit. Trouble is, according to some bankers, no small businesses need loans right now because they would prefer not to expand when unemployment is high and people are paying down debt — not exactly a recipe for screaming demand.
Plus, banks aren't exactly eager to be in the government's back pocket and therefore subject to additional regulation and oversight.
Answer by LoriKeet at 8:22 AM on Sep. 26, 2010
Answer by jesse123456 at 8:37 AM on Sep. 26, 2010
Answer by jesse123456 at 8:38 AM on Sep. 26, 2010
Answer by Carpy at 10:26 AM on Sep. 26, 2010
no small businesses need loans right now because they would prefer not to expand when unemployment is high and people are paying down debt
This is a big issue that Obama doesn't understand because he has never owned or run a business. Small businesses aren't willing to expand and borrow money if the future is uncertain. They cannot calculate their cost of doing business because of all of the legislation our current law makers are putting into place. If you don't know how those laws are going to effect your business, the more sound businesses aren't going to make any changes that might negatively impact their business (read livelihood) and the state of their current employees. When times get tough, it's better to lay one person off and save what business you can instead of having everyone go down with the ship.
Answer by QuinnMae at 10:54 AM on Sep. 26, 2010
Answer by gertie41 at 11:09 AM on Sep. 26, 2010
My solution is to let the free market decide who is going to succeed and who is going to fail. Government has no business stepping in like they have and it's one of the biggest reasons this recession has lasted so long. Oh, wait. I forgot that they deemed the recession over last year in June. My point about him not running a business is that he doesn' seem to realize that his efforts will be fruitless because successful business owners don't make decisions to expand in times of uncertainty. When you don't know what your tax bill will be, do you go spend money you don't have on something you don't need? If a business is doing well and expanding because they are selling more then they should already have the capital to expand. They shouldn't need a stimulus. When are we going to remove the expression 'too big to fail' and who gets to determine the size of 'big'?
Answer by QuinnMae at 11:15 AM on Sep. 26, 2010
And Gertie, it's fine that you don't agree with my point of view. I am not trying to talk you into agreeing with me. You and I have a fundamental difference of opinion on many issues, and I'm okay with that.
IMO, Obama was ill prepared for the job that was handed to him. I never would have voted for someone that has no experience and the only experience he does have has been circumvented by his constant need for a bigger stage. What exactly did he accomplish for his constituency as a Senator? I would love to know what he has actually accomplished in the positions that he held prior to the Presidency.
Answer by QuinnMae at 11:20 AM on Sep. 26, 2010
Some presidents have run businesses or been involved in business. Maybe that experience would have told him you can't force people to borrow money when they can't in good conscience say with certainty that they will be in business to pay it back. Lower taxes, stimulate the economy that way. That will generate income, tax revenue, and jobs. There's a plan for you, gertie.
Answer by jesse123456 at 11:22 AM on Sep. 26, 2010
Answer by yourspecialkid at 12:37 PM on Sep. 26, 2010
Next question overall