Need help with projects? Check this out
April 15, 2009 by Valerie HelmbreckPosted in: Budgets and spending, Communication, Data centers, Databases, Gadgets, In this week's e-newsletter, Latest News & Views
Got some stalled IT projects that need capital to get off the ground? The Obama administration seems poised to help, if you’re part of a small business.
In a recent speech, Obama quoted from a letter he had received from a small-business owner. “Small-business people are resilient and resourceful given half a chance. But we need the chance.”
To give them that chance, the president said the Treasury Department will commit up to $15 billion to help unlock the credit markets by purchasing small business loan securities currently frozen on the secondary market.
“By purchasing these securities, it will unlock these secondary markets, and in turn, free up more capital to jumpstart lending for small business owners,” said Small Business Administration Acting Administrator Darryl K. Hairston. As part of the plan to unlock the credit markets for SMBs, the administration will:
- Eliminate fees on SBA 7(a) loans and for both borrowers and lenders on 504 Certified Development Company loans, and
- Raise guarantees to up to 90% on SBA’s 7(a) loan program.
Ladies and gentlemen, start your engines.
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Tags: capital, credit, IT projects, loans, small business, Small Business Administration
April 21st, 2009 at 2:43 pm
Not to be a pessimist, but….
Considering that Obama’s position is that “bailout” dollars equals an equity position for the government, I would rather pass on this than have Obama show up one day claiming to own half my business, as he has done with GM and the top 10 banks.
Of course, the other incentive not to seek funding for growth of a small business is the $250,000 income “tax penalty” ceiling. What small business owner in their right mind would want to INCREASE their income above the limit, incurring a 60% tax liability?
“We” (the collective we) missed our opportunity to open up credit markets by letting those companies that acquired too much bad debt to fail. By “bailing” and “bailing” and “bailing”, “we” are trying to prop up commodity costs that would normally and naturally deflate as these entities failed, and the result would have been a deep but short recession rather than a long, painful one. Further, by spending future revenue to “patch” holes in the economy today, we are creating a second “wave” of risk that our children and children’s children will have to deal with.
Instead of supporting all of this, If I were a small business owner, I would fire all my employees, close my doors, and line up for my welfare check. Atlas shrugs.