Surge in Loans Unlikely From Small Business Plan

[ShockediSay]

Source: WSJ

President Barack Obama's plan to divert $30 billion of federal bailout funds into new small-business loans will prop up thousands of struggling entrepreneurs but is unlikely to break the lending logjam.

Read more: http://finance.yahoo.com/loans/article/108707/surge-in-loans-unlikely-from-small-business-plan;_ylt=AlVm0eH6UV3bl7UEL2BBBhm7YWsA;_ylu=X3oDMTE1ZWRyZzNpBHBvcwM4BHNlYwN0b3BTdG9yaWVzBHNsawNzdXJnZWlubG9hbnM-?mod=loans-personl_smallbiz&sec=topStories&pos=6

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More Fascist corporate funded anti Obama propaganda

from who else, Rupert Murdoch's Wall Street Journal.

Did you notice they give away their propaganda articles

but hard business articles you have to pay for?

Wake up to the propaganda war! We're losing!!!

[NJmaverick]

1. We are too busy eating our own to engage in a badly needed fight

with the right in a propaganda war

[midnight]

2. If this is the propaganda, what is the truth? Let's post the truth next to the

propaganda to make a distinction and help those of us who are being bombarded..

[KansDem]

3. This reads like an editoral...

I kept looking for "Editorial" somewhere on the page, but didn't find it.

How does this "reporter" know that Obama's program will have the effect reflected in the title?

I don't mind his including criticisms in the article--one would expect that in "well-rounded" reporting--but a better title might be:

"Obama's Program a Small but Good Start."

or...

"Republicans Likely to Oppose Obama's Relief Program for Small Businesses."

or...

"TARP Funds Diverted to Assist Small Business and Struggling Entrepreneurs."

but...

"Surge in Loans Unlikely From Small Business Plan" sounds like an assessment, and frankly, I don't read any comments in the article that support this assessment.

[Abq_Sarah]

4. I would tend to agree

That small business loans will help some small biz owners who are already well positioned in the market obtain capitol for modest growth. But... the people who will be able to obtain the loans are the people who can survive without them. Banks just aren't going to give you a fist full of dollars if you've been bleeding money or are newly entering a market with a lot of competition. You've got to be able to show you're capable of paying back those loans.

[Oldhat1970]

5. You Are Correct

I own a small business and luckily I "sucked it up" and disciplined myself through the 1st 6 years not to take a loan. 12 years into it I have only borrowed around $75K to date for the business. Our annual revenue this year will be around 1.6 million. With me, and still servicing around $20K in debt I'm setting "pretty" in a sense that I'm not financing a shit load of debt and will survive just fine although we've seen revenue drop around 40% over the last two years.

What does this all mean? We are positioned a lot better than most companies and there is no way we can get loans because we have not shown any profit over the previous 2 years (losses each year), if you can not show a track record of a profit you will not get a loan unless you either have capital (equipment that is bought and paid for to leverage against the loan) or if you have a substantial contract or Purchase order from a large "stable corp".

These loans will not be be going to a small company who have a great business model and a good product or service whom have simply been struck by this economy.

The small business world is tough out there, there are no funds. I've even had to quit extending credit to other businesses simply because they are dropping like flies and shutting the doors. If things do not turn-around in 6 months, the "second wave" of bankruptcies are coming from the small businesses owners whom not only will be shutting their doors, but will also be filing personal bankruptcy on the personal side of things since their homes were mortgaged to the hilt to help finance their business. And then comes the second wave, the second wave will then turn into the third wave of the commercial real estate bubble bursting (who do think either leases or own commercial realestate...the "small businesses".

SBA loans are really a joke, but in teh end they are "guaranteed" by the government....gonna be a big bill the government has to pay for the amount of bankruptcies that businesses with SBA loans default on...6 months!