I've been watching all these giant businesses grab bailout money for a few months now. At first, I was surprised they received it, then a bit skeptical about the whole thing...Now, I'm starting to get a little angry.
Not that these firms are getting bailed out, but that no one is really helping smaller businesses in America. Remember them...they are what both political candidates this year called "the foundation of our economy."
Check this out: SBA 7a loans were down 30% last year. Through Nov. 15 they were down 50%. SBA 504 Loans were down 17% last year and 38% this year.
At a time when businesses need capital more than ever, SBA loans have dried up. Hello! Anyone home?
Now, the SBA says loan demand is down, many borrowers are not creditworthy, etc. All of this I'm sure is true. The poor economic outlook makes the best business projections questionable. However, we've got to figure out a way to get these deals done. These factors aren't keeping the giants from bailout cash.
Now is the time, if we are bailing out everyone and his brother, to somehow find a way to capitalize our foundation.
--Ron Ameln, SBM