Is Obama really helping small business?
I can’t help thinking that President Obama is trying to solve the wrong problem for small business. “There is still too little credit flowing to our small businesses. There are still too many entrepreneurs who can’t get the loan they need to open their doors and start hiring.” This sums up Obama’s plan to help entrepreneurs. That means making it easier to get small business loans and encouraging small banks to loan. There are two things wrong with this strategy. Revenue not debt Yes, many small businesses have cash flow problems in this economy. And a loan would help. But that need is a symptom of the real problem. They’re aren’t making enough money. They need to make more sales or to control expenses better. If they don’t do that, they’re not going to be able to pay back the loans. Loans are available Conventional wisdom says banks are lending to small businesses. There is lots of anecdotal evidence because of news stories that interview small business owners who are denied loans. One
