Um... Why Don't We Do For Small Business Loans, What We Did For Student Loans ???

[WillyT]

For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender.

The change, included in the health care overhaul bill that cleared Congress last week, has caused considerable turmoil in the banking industry, which stands to lose billions of dollars in federal subsidies. But for borrowers, the change will be much less drastic. Interest rates for federal student loans won't change, nor will the limits on how much you can borrow. And Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties.

Link: http://www.usatoday.com/money/perfi/columnist/block/2010-03-30-yourmoney30_ST_N.htm

Fuck the bankers... if they are hoarding money,instead of lending money, then the President should have the Fed (or whatever appropriate entity) start giving direct Federal loans to qualified small businesses and start-ups at reasonable rates, and let the big banks suck on that fact for a couple of years... or decades.

The businesses would have to be located physically in the U.S., and they would have to employ people located physically in the U.S. and/or who pay their fair share of Income Tax to the U.S.

Any reasons other than "Corporate Interests" why this could not be done???

:shrug:

[GSLevel9]

1. great idea...

a better use of money than the "money meet rat hole" approach...

[WillyT]

2. Thank You... And I'm Not Even In Congress !!!

:silly:

:evilgrin:

:hi:

[griffi94]

3. but where's the profit for wallstreet

my guess is the lack of private frofits is the deal breaker.

[WillyT]

4. That's My Point...

We did this for the Federal Student Loan Program... let's expand it.

Even the threat of this might be enough to loosen up some money for small businesses.

The U.S. Chamber of Commerce doesn't even represent the interests of SB's any more.

And if it's true that SB's are the largest job creators in the Economy, then let them see the Democrats create this program (come to the/their rescue), and let the Big Boys EAT CAKE!!!

:shrug:

:hi:

[EC]

5. Wow, great minds think alike,

not more than 10 minutes ago I posted the same thing....:toast:

[WillyT]

6. Really ???

GMDTA !!!

:toast:

I swear, I did not see it.

:wow:

:hi:

[tammywammy]

7. Recommended n/t

[Arctic Dave]

8. Doesn't the SBA do this already?

Do I have my facts right?

If they are, why not expand it lending practices for businesses already in operation.

[WillyT]

9. Great Question

I do not know.

But if they do... why isn't it happening? Or is it?

Or... is it like the old Student Loan Program, where the Feds guarantee the loan, but you still have to go to private banks to GET the loan?

:shrug:

[knitter4democracy]

11. You have to get it through a bank.

The bank then facilitates the loan with the SBA.

[WillyT]

13. Ah... Thank You !!!

:hi:

[red red red]

10. I think you are on the right track n/t

[w4rma]

12. Agreed! (nt)