How Will $300 Billion Help Your Business?
This week, the U.S. Senate may vote on a bill to create $300 billion worth of small business loans. If this bill passes, the government will funnel money through community banks to give small business owners loans to create jobs and grow their businesses.
Small businesses create 64 percent of the jobs in the United States, so it makes sense for the government to help keep these companies afloat. But how realistic is it, that the businesses most in need of government backed funding will actually get the loans they need?
Even before the economic downturn, it was difficult for small business owners and aspiring entrepreneurs (particularly in urban areas) to qualify for bank loans. Now, after dealing with the crunch of the economic downturn even the most solid businesses find it hard to meet strict bank requirements.
The reality is– entrepreneurs with their own money, collateral, and perfect credit scores are not the ones who need bank loans! But unfortunately those individuals, who look great on paper, are the only ones who seem to qualify.
If the government really wants to rejuvenate America’s small businesses, it needs to demand that banks step up and give average entrepreneurs a chance to qualify for the funding they need. The government should encourage banks to assess the full measure of each company, instead of blindly making qualification decisions based on credit scores.
There are small business owners all over the country who put their life savings into their companies. They put people in their neighborhoods to work. And they kept their doors open, even in difficult times, to serve their communities. These entrepreneurs deserve a chance to invest in their businesses, and to help create the jobs our country desperately needs. It’s time to help small business owners help America! The proposed bill is a start, but banks must be held accountable for how they disseminate the funds to entrepreneurs and their businesses. At this point, banks should be reaching out to businesses offering loans. And– urban entrepreneurs in neighborhoods with the highest unemployment rates should be first on their call-list.
How will $300 billion help your business? If the new bill passes, do you think it will help your small business get the funding it needs? Share your thoughts below…