Small business is where new jobs are created in our economy. Everything is working against that right now.
Banks are not lending to small businesses. Nearly 4 of 10 small-business owners polled in the past few weeks say they can’t get the financing they need to run their businesses. Why? Another poll shows that 67% say their business is down. Plus, banks say the small businesses are falling behind on their mortgages.
Banks that have traditionally lent to small businesses like B of A and CIT are in trouble. CIT says it may need $7 billion in new capital to stay afloat.
Consumers are scared and have stopped buying. The small business gets hit first. And, they have the lowest survival margin for reduced revenues.
Credit card companies like American Express have cut the credit lines on OPEN small-business credit cards.
Proposed legislation like cap and trade and health care will hit small businesses hard.
Everything Washington is doing is directed to help the big guys, but the key to get people back to work is the small guys. They are getting no help and being battered. So much for sharing the wealth.
Mexicans have stopped coming into the country since there are no jobs. Small businesses are where they got jobs.
As more and more small businesses go out of business, the pressure on the bubbling commercial mortgage problem increases and the unemployment numbers keep going up. In California, small businesses get IOU’s from the state. So far they have been able to get banks to cash them, but banks are warning that this will stop soon.
As small businesses go out, cities lose tax revenue. In addition to this tax revenue loss, the housing crash will reduce tax revenue further when appraisals reflect the reduced value of residential real estate.
The current administration is a big picture group. They want to push through the big bills that will speed us to socialism. No one is watching the real problems we face as a nation.
Getting small businesses back on their feet is a top priority. If no one pays attention to this, and no one is, there will be another bubble burst, the commercial mortgage bubble, and another round of bank failures and spiraling unemployment. This will extend the recession and require a pause in the great plan to make us into France.
Unless the real plan is to nationalize the banks, then it all makes sense.
