The Feds are offering small business loans that hardly any businesses are taking advantage of. The big banks are clamoring for more local control of their government-funded loan offerings. Both groups seem out of touch with what owners really need to respect to start-up or expansion capital. Why can’t everyone get on the same page?
$255 million at No Interest: Any Takers?
Gazette.net reports that we have the Obama administration offering short-term, interest-free loans to the tune of up to $35,000 to cash-strapped small businesses--and it doesn’t seem like anyone is interested. It’s called America's Recovery Capital Loan program, funded with $255 million by the American Recovery and Reinvestment Act. To date, only three loans have been processed in the Baltimore district, with only two in the Washington, D.C., district. The newness of the small business loans program may be partly to blame.
British Small Businesses Say “Let Us Decide”
Across the pond, big banks are begging for the chance to have more flexibility in their lending. A UK press release cites bank officials contending that, because their closer to the ground, they have a better feel for those small businesses that have a good chance of making it.
Obama Pushes for Big Banks to Open Up
Almost as a response to big bank excuses for the turmoil, President Obama chided 21 federally-funded banks for not doing enough to stimulate borrowing. Fox News reports that Obama believes federal bail-out money is going toward institution debt as opposed to small business owners--the original intention.
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