Op-ed from Rob Wagner
Campaigning for the Small Business Plan that he announced during the State of the Union, Obama has been stressing the need for businesses to obtain capital. The plan is to make available money for businesses to expand or start, in turn create jobs. Supply side economics in this case will not work. Too little too late.
Small business owners faced a crisis the same time the Federal Government was bailing out wall street, effectively ignoring the main street of America, the small business. Small business struggled to stay afloat and did just about anything they could to right their ship.
Just about every small business in America had to make some changes. Cutting jobs was a result of softer sales numbers and created the increase in unemployment numbers. In an effort to help, the American Recovery Capital bill was enacted for the purpose of getting money in the hands of business owners, this was a failure. The loans where to difficult to obtain.
Now we see the President proposing the Small Business Plan (this effort will not help the thousands of businesses that have closed). This plan focuses on increase the available capital to small business through community banks. This is too late for many of our small businesses. Many of the small businesses that needed the money to correct themselves and continue their operations have shuttered their doors. The survey of loan officers has shown that many small businesses are not seeking capital.
Richard M. a consultant in California, said:” I’m looking for customers and so our my clients.” He went on to say that many small businesses are “not looking for loans they are looking for ways to increase sales. The answer is lower personal taxes to increase consumer spending, most businesses owners file personal not corporate taxes. Putting money in the hands of consumers would do more for small business than lending would, business need to increase cash flow though sales not debt.”
