White House Eyes Bailout Funds to Aid Small Firms

White House Eyes Bailout Funds to Aid Small Firms

www.washingtonpost.com

The debate over the proposal has centered on whether taxpayers would be protected and whether banks that make these loans to small firms would lower their lending standards if the government promises to cover loans that go bad, according to participants present or briefed on the discussions. They spoke on the condition of anonymity because the conversations were considered private.

Administration officials want to prevent small businesses from closing and adding their workers to the growing ranks of the unemployed. Some officials say small companies are key to reversing the soaring unemploy

(visit the link for the full news article)

My family owns a small business, and while I like the idea of the government trying to help small businesses by "lowering the lending standards", I'm not too sure I like the idea of the government (read "the taxpayers") paying off all these loans that go 'bad"!

Aiding small businesses could be a gamble because they have a poorer record than large corporations when repaying loans; it would be the riskiest government investment so far under the bailout plan.

How much more debt can the government just keep piling on itself before the whole "house of cards" comes tumbling down?

And while I do believe this quote from the article, ...

"If we are going to move out of this recession and into recovery, it's going to be small businesses that leads us,"

I just think this is too risky.

There's a lot of small businesses that could use a loan right now, but there are also a lot of small businesses out there that, even with this new "loan proposal" will fail, leaving the government (read "the taxpayers") to pay off the loan.

Just seems like a pretty risky idea to me when the country is already trillions in debt.

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

[edit on 7/11/2009 by Keyhole]

Let's do it, sounds good. Why should only the super rich be allowed to embezzle billions? As long as they do it with no oversight or accountability so i can get in on the action too and live the american dream of robbing my way to riches.

I hope this happens soon, and that it'll further the downfall of the government. The sooner the empire collapses under it's own weight the better. I call dibs on the job of stringing up crooked politicians when the power balance shifts. I'll tie nooses all day if they'll be used to dangle our oppressors from lightpoles and what trees we haven't cut down and replaced with lightpoles.

On the surface looks good - but it's a rotten apple.

The problem is that return on investment at the moment is extremely poor - and will continue to be poor for the perceivable future.

It is not worth running a business where you are making 2% on capital - just shut it down, try and sell some assets associated with it and look for another line of business that is suited to the current climate - odd jobs, gardening, CV writing or something like that.

Failing that - if you don't want the angst of trying to switch over to a new business, then invest in something that might show a return - think about what stocks are likely to resist falling, commodities, energy, agriculture. If you really want to play safe - then some gold and silver metal is looking good right now - but it isn't going to help the economy, but it might accelerate the inevitable - allowing things to normalize as quickly as possible, also you personally get a win.

There is a lot of protection extended to large corporations by regulations and special benefits. This is why small business is going to struggle - they need to repeal a whole lot of regulation that opens up the door for small business to get a proper share of profits - that would turn your 2% business into a 5-10% business, but it will never happen - the large corporations will never let that regulation be repealed.

The bottom has not been hit yet - small business is the fastest on its feet, and can switch course, and rebound the best.

If your Ferrari dealership, or diamond shop is closing down - then hey - that's reality, people are not paying for that stuff anymore, even if its a corner store - then realize people are not going to be spending for convenience anymore - they want cheap.

So - try something else - or try and sell, and get something for your assets and invest the money. Offering bailouts for businesses that are no longer viable, and won't be for the next 5 years is a waste of money.

If they had just allowed the failures to fail - and backed small manufacturing businesses from the start, then I would have told you they were doing the right thing - now its too late for that.

I have a question about food stamps in the US - I only learned recently they were even being used, what a socialist crock of sh-t.

Anyhow - my questions are;

1) Can you redeem them anywhere - or only in certain stores? (If it is selected stores only, then it is killing small business again).

2) How long have they been issuing these cardboard bread lines? (Just interested in how long the US has had bread lines without the world really knowing it.)

3) Is there a time limit, or can you get them indefinitely? (Do they plan on keeping you alive, or starving you all next month?)

I don't think it's "too late" to use stimulus funds to aid small businesses. What's good for the goose (big business) is good for the gander. Main Street is as deserving of a bailout as Wall Street.

The idea is just in the talking stages, of course. It may not take off if these loans would be too risky.

While it may look and sound like a good Idea actually it is not.

First America unemployment is skyrocketing, small businesses while good for the economy can not pay the salaries that supports the middle class in America, just the working poor.

Still getting loans to keep in business and support the working poor will not help the economy when it comes to spending and consumerism.

The less money you make the less you are bound to spend.

Then this small businesses are going to be left with nothing more than bills to keep their businesses operating but from where they will get the profits.

Sorry to say that the way our nation economic crisis has evolved is going to be a big burden on the small businesses to keep up with what outsourcing has done to the nations middle class jobs.