Comments on: Obama fails small businesses

By: Jettagl

Jettagl — Tue, 19 Jan 2010 19:58:18 +0000

I am an African-American and operate a Small Business that provides services to the Federal Government.

During the Bush administration we were shut out of most procurement bidding opportunities, as was all small, minority and veteran-owned companies. Large companies routinely lied about their size in order to siphon work away from small businesses, and federal regulations were routinely ignored by contracting officers and continue to be ignored.

The federal agency’s Inspector Generals turned a blind eye to this practice. I naturally assumed after a strong election victory, that fixing this would be one of administrations priorities, being that positive changes here would reverberate throughout the economy.

You can only imagine my disappointment in this administration’s ‘real’ attitude when it comes to including small, veteran-owned and minority businesses in any recovery act or day-to-day federal contracting opportunties.

By: vinfromdallas

vinfromdallas — Thu, 19 Nov 2009 16:12:53 +0000

A government can never be benevolent. They can only redistribute what they plunder and mulct first.

That being said, this crisis was a crisis of confidence. If the Obama government could have provided generous SBA loan guarantees instead of giving handouts to fraudulent institutions like Countrywide/ BOA, investment would have mushroomed, in a good way. As a small business operator/owner, I have half a dozen projects, and associated employment possibilities, waiting for good funding sources.

The ideas we hear from the likes of Thomas Friedman, Eric Holder, and Tim Geithner are bankrupt, as are the ideas from our president. I refuse to work harder for this president or its chosen administration.

2010, vote out incumbents, Rep and Dem alike.

By: marv

marv — Thu, 19 Nov 2009 14:22:05 +0000

I had a sweet little nitch market, repair service from 27 years experiance in a manufacturing business. respect fome the manufacture, but I carried 50k debt. I now have no credit, will file bankrupsy. No income and no parachute. Now people are getting 99 weeks of unemployment and I have to file for welfair. I was laid off after 9/11 and recieved 26 weeks unemployment. But now The all mighty ARC program comes along fully funded and fully garenteed. Fide a bank that will offer it other than to save their own butts. I’s not going to matter for long with gold still on it’s metoric rise it won’t be long before the U.S Folds. Nice guys finish last.

By: yr

yr — Wed, 18 Nov 2009 18:03:49 +0000

Big failure. Total failure.
Even as an owner of a successful, debt-free small business I find credit conditions to be far from reasonable.
I’d like to expand my business but I can’t, and I work on a cash base only.
And by the way, all that ‘recovery’ talk is a mixture of wishful thinking and hype. It’s not happening in reality.

By: G Hansen

G Hansen — Wed, 18 Nov 2009 17:18:49 +0000

Good ideas, but we have to stop expecting everything to come down from the President. Why not put pressure on the media to start talking about this…we are in economic stalemate because everyone wants to talk the political power game and now one wants to talk what is actually needed to get things done. There is stalemate at every turn.

By: Mark Peach

Mark Peach — Tue, 17 Nov 2009 14:56:08 +0000

From my perspective as a citizen of South Africa and having spent a long time in Europe, I have watched the US for a number of years and for the first time have bhothered to post. I mean this positively and sincerely: until you folks understand that you are incredibly self-destuctive and impatient, you will not emerge from any challenge; this is simply because you never stay around long enough to see the solution through. Everything must be done today, and exactly as the more than 300 million of you with your diverse requirements wants it done.

Your status is slipping, but ot because of your manufacturing output, Bush or whatever eolse you want to blame it on. It’s because you think you have some diving right to go through what the rest of the world goes through – and you’re wrong

Really hope you all grow up and become the nation you could be. If Obama fails, it’ll be because you couldn’t go along with him. Sad.

By: scheng1

scheng1 — Tue, 17 Nov 2009 13:54:41 +0000

Even if he pledges a few billion dollars, he has to make it easy for small businesses to get loan. There is no point putting so many barriers to strike fear in the small businesses’ owners.
Maybe the government can change the strategy of helping small businesses, such as offer to buy 20% equity of the small businesses, and provide networking opportunities, financial support, set up a team of legal and finance experts as shared services to help the small businesses.

By: charlotte

charlotte — Mon, 16 Nov 2009 20:21:19 +0000

I have been a proud business owner for 20 years.
Not this year. It is like being bullied everyday, again
and again.

By: Chris Marschner

Chris Marschner — Mon, 16 Nov 2009 14:38:53 +0000

Virtually all of the Stimulus funds have flowed into the economy through state governments who have used the funds to prop up their own budgets. Very few investments in public capital goods are even being produced, yet operational projects are well funded. What do we do next year.

Congress and the President had a perfect opportunity to ease the liquidity crisis in the banking sector while also aiding small employetr based businesses.

Unlike state government’s, the private sector probably had numerous “shovel ready” projects that wound up sitting idle for lack of funds. What if instead of pouring 750 billion into the capital structure of the nation’s largest banks we took those funds to re-capitalize U.S. enterprises that had solid plans for growth and investment. Theoretically, we could have capitalized 750,000 SME’s at $1,000,000 each. That’s 15,000 enterprises per state. Now if we further assume that this $1 million in new capital is the the typical equity position required by lenders then lenders could lend an additional 4 million per firm. Thus, we would have 750,000 firms investing a total of 3.75 trillion in new property, plant and equipment.

Why would they invest when consumption spending is down? Because not all sectors are stagnant and the infusion of capital lowers the cost of capital in this case by 20%, making existing investment opportunities more viable.

So if this were to take place, 3.75 trillion in new gross private domestic investment would be multiplied by at least a factor of two as a result of the new incomes that were created yeilding 7.5 trillion in increased GDP. If that new income was taxed at the lowest rate of 15% then the tax revenue stream for the initial investment would have been 1.125 trillion or an ROI of 50%. Even the most risk averse VC or angel investor would like that return.

By: Casper

Casper — Mon, 16 Nov 2009 08:14:45 +0000

I agree, what we forget is that democracy shifted power to the polls. This is a worldwide challenge: small business generates jobs, rents, leases, housing, food, manages water, distributes and uses energy and IT which should ultimately lead to quality exports.

Tax multipliers that are generated through actuarial sliding scales should however be eliminated. Large and super corporates, including mines and banks seem to have incremental and effective tax breaks, so small businesses, general taxes and the 20/80% rule of thumb makes up the rest.