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Administration Considers Bailout Funds for Small Businesses

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posted on Jul, 10 2009 @ 06:18 PM
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Administration Considers Bailout Funds for Small Businesses


www.washingtonpost.com

The Obama administration is developing an initiative to take money from the $700 billion program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people, according to sources familiar with the plan.

The new effort -- which would represent a striking shift from the rescue program's original mandate.
(visit the link for the full news article)




posted on Jul, 10 2009 @ 06:18 PM
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The initiative would expand a Small Business Administration lending program called 7(a), the agency's most popular lending program. Lines of credit for small companies could greatly increase in size. If the firm failed despite receiving this help, the government would cover most of the losses on the federal loan, perhaps as much as 90 percent. Lines of credit act like the credit cards for companies -- short-term revolving debt used to pay a variety of immediate expenses.

The scope of the Troubled Assets Relief Program, or TARP, has been expanded several times already, first for auto manufacturers and then to life insurers. In both cases, government officials argued that aiding these firms was critical to preventing economic upheaval. But aiding small businesses would be the program's most dramatic expansion.




www.washingtonpost.com
(visit the link for the full news article)



posted on Jul, 10 2009 @ 07:12 PM
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Well I guess it will help some small businesses by allowing some people stay employed longer, but it is by no means a long term solution.

They are essentially just sending themselves deeper into a hole. Well at least they are trying to think of something, which is good, but ultimately it's just putting these companies deeper in debt.

Also, what kind of terms are going to come along with this? I wonder if it is going to be anything like what happen with the Banks that got TARP funds.



posted on Jul, 10 2009 @ 07:30 PM
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reply to post by Hastobemoretolife
 


Bingo!

You hit the nail on the head! Once a small business gets funds then they (TPTB) can dictate salaries, hiring practices, union involvement.

Don't do it people!

This is a perfect example of a "Faustian Cautionary Tale".



posted on Jul, 10 2009 @ 07:48 PM
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Taking taxpayers money and giving it to businesses? Isn't that pretty much the equivalent of forcing people to buy their products? Oh no, not quite, when buying a product people actually get something in return.

Congratualtions America, your government is now forcibly redistributing your wealth to those who do not have the ability or talent to succeed. Welcome to 'free market capitalism' where nobody ever loses (except you).



posted on Jul, 10 2009 @ 10:17 PM
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Funny how they said bailouts were for big business which was "too big to fail".

(cough) although that hasn't helped employment (cough)

... but since they're already printing worthles money and controling the businesses they "help" - they might as well do it for EVERY FREAKIN' BUSINESS & CONTROL EVERYTHING!!

God F#@%ing Bless America!



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