Posted by
Mark Montgomery " Small Biz Talk Radio" on Monday, January 26, 2009 1:42:26 PM
Congress is going to spend the money anyway and it is not going to solve the problems that small business is having. The current bailout of large financials has created an environment that eliminates competition. Plus the banks and Credit card companies are gouging on rates and at the same time eliminating or cutting credit lines.
If small businesses cannot pay employees, purchase cars, computers, homes, supplies, and market, where does this leave the financials and big business? Most politicians have never faced what small business owners face daily.
Making a long story short, the government is behind the trend. Another shoe is about to drop and it will be huge. If they are going to spend the money they had better consider the following.
Direct lend to small business. This is a straight loan which immediately would lower the cost of doing business and loosen up the credit crunch. Instead of billions going to single entities the government could be lending small amounts to thousands of businesses across the country at 1% for 7 years to consolidate high interest loans they are having difficulty paying. This in turn would go back up the chain paying off the banks. The banks would now have a need to generate more loans at lower rates and compete. Banks could process payments.
A form could be made available online through lets say IRS or the treasury. Business could submit copies of statements and proof of high interest debt. Have the amount certified by CPA and notarized. Check to business could be cut by a dept. capable of doing this such as IRS.
I saw much of what has happened 1-2 years before hand and wondered why it was taking so long for the powers at be to see the coming tidal wave. It goes back to why were we so blind prior to 9/11.
Another wave is approaching and they don't seem to see it coming! Can big business survive without small business? When I say small, I mean small. One to fifty employees not 500.
Big government is not the answer, it is the problem, however, they created the problem we are now having and are going to make it worse unless we at least attempt to redirect their misguided ambitions.
Mark James