How Do We Stop The Bleeding of Small Businesses?

Posted by politicalpartypooper on March 7, 2010

45,000 Small Businesses closed in 2009 in the United States of America.  The average number of employees for Small Businesses is just under five each.  That’s an estimated 225,000 people added to the unemployment lines.  Because banks were so stingy with Small Business loans last year, many of those who closed their doors did so because their cash flow resources were no longer available.  Many other small businesses were able to survive only by cutting wages, labor, or laying employees off altogether.

I see many people complaining about the unemployed and how long they are receiving unemployment checks.  No one says “boo” about small business owners who have gone under.  These owners are not eligible for unemployment compensation, so if their business goes under, unless they are independently wealthy, they are screwed.  Many of my clients are small business owners, and more than a few of them closed their doors for this very reason.

Do you think our Federal Government could get its collective head out of its ass long enough to implement a new idea?  Instead of letting banks decide on SBA loans, especially when they clearly want very little to do with them, why not do short-term direct lending to small businesses?  I realize it’s another government program, but the problem is, these small businesses are dying because they can’t find capital for seasonal adjustments.  Many are laying employees off for the same reason.

If your principles dictate that we get people off of unemployment as fast as possible; if it chafes your ass that we keep extending unemployment benefits, don’t you think it might be a better idea to meet the problem of failed businesses and unemployment before they lay people off or close their doors?

Just thinking out loud.     Ω


One Response to “How Do We Stop The Bleeding of Small Businesses?”

  1. Tony Montana said

    Now here is a government program that would work to decrease unemployment, in my opinion. Granted I am a Cuban drug dealing thug and have no business degree, but small businesses are the largest employers in the US. We need to provide a nurturing environment for the private sector to create jobs.

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