Small Business Administration squanders $24 billion in bad loans to non-small businesses

[TexasTowelie]

More than $24 billion in loans given out by the U.S. Small Business Administration (SBA) have defaulted, an OpenTheBooks.com analysis found.

Since 2000, 160,000 defaulted SBA loans were charged to taxpayers, totaling $17.5 billion, the OpenTheBooks.com report disclosed. About 1.4 million workers were displaced after losing their jobs within these failed companies, the government spending watchdog reported.

“The mission of the SBA is to provide lending to entrepreneurs with great ideas who can’t find financing in the private marketplace,” says Adam Andrzejewski, CEO of OpenTheBooks.com, the world’s largest private database of government spending.

“The public image is one financing the American Dream. But the reality is that the SBA is costly for taxpayers, and – even worse – it creates a painful human cost for the workers it dislocates.”

Read more: http://www.oleantimesherald.com/news/nation/report-small-business-administration-squanders-billion-in-bad-loans-to/article_6dea074e-dd35-5eb4-a998-b0f5d3e629e8.html

[Farmer-Rick]

2. So they lent out to big profitable corporations

Like Conoco, Holiday Inn, Philips, Comfort Inn, Days Inn, chain restaurants and BP. And then the rich profitable corporation defaults. And they get to keep our tax payer dollars. No one calls them to pay back the loans. No one charges them for the rest of their lives, take their tax refunds and Social Security until it is paid off.

This is so outrageous. Consider how we abuse people who took out loans for an eductation and can't afford to pay them back. They can't even discharge the debt in bankruptcy. But these huge profitable corporation owned by the filthy rich, they get off scott free.

This is capitalism in action. Aren't you glad your tax dollars went to support BP and Apple Restaurants?