Small Business Key to Recovery Where is the Help?
Sep 21, 2010
The growth of small business has lead this country to recovery in nearly every recession since World War II. Small business typically develops in down markets when people that no longer can find jobs decide that they have a good idea and take the risk to open a new business. Once small business starts growing big business benefits and start growing from the new buying needs of these small businesses. Subsequently the government benefits because tax revenues increase to support services. It's a cycle.
Unlike any other recession no one is interested in helping small business get going. Be it, from the government, banks, or credit card companies. Bottom line there is no money to lend to small business.
Today in Congress there is a bill that is stalled in the Senate known as the Small Business Job and Credit Act. According to a CNN article "This bill would authorize the creation of a $30 billion lending fund. The Treasury Department would run the program, which would deliver ultra-cheap capital to community banks. These community banks are defined as those with less than $10 billion in total assets.
Other key components of the bill would provide $12 billion worth of tax relief for small businesses between 2010 and 2020, according to a preliminary estimate from the Joint Committee on Taxation. The bill also would increase Small Business Administration loan limits and extend loan sweeteners through the end of the year. It would offer a slew of tax cuts for small businesses, to encourage both investment and entrepreneurship. On top of that, the legislation would provide $1.5 billion in grants to state lending programs that can't turn to empty state coffers for more cash."
The President has finally begun pushing for this bill, as the jobs numbers are not improving and elections are around the corner. We must write our Congressional representatives now and ask them to pass this bill. We cannot wait any longer. Ultimately, the Stimulus Bill supported government jobs over private sector jobs and the job numbers have proven it did not work. Government jobs without added tax revenue from the private sector cannot sustain itself without increasing deficits, which is exactly what has happened. We have no real job growth and have increased the federal deficits to levels not seen since World War II. We need to go back at look at history; supporting small business will lead us to recovery. That's a fact.
COMMENT ON THIS ARTICLE VIA OUR BLOG
Written by: Hans Hansson
Hans Hansson is President of Starboard TCN Worldwide Real Estate Services as well as a member of the Board of Directors for TCN Worldwide Real Estate. Hans has been an active broker for over 25 years in the San Francisco Bay Area and specializes in office leasing and investments. If you have any questions or comments please email firstname.lastname@example.org or call him at (415) 765-6897. You may also check out his website, http://www.commercialspacefinder.com/.