The small-business lending boost - missing the mark?

[ksoze]

Although I am commenting on the press stuff released as of now before official release, the small business loan details appear less than optimal.

It appears they are simply increased guarantees for SBA loans, not the real loosening of credit that is chocking small businesses. Banks have frozen lies of credit and slashed others as soon as the crises hit. Any TARP funds have not made it those businesses by the banks. It appears this is a step forward, however how many businesses use SBA loans and where is the real push (shove) to get the banks to free up their capital.

How about this as a "guarantee" for the banks - If you don't free up lines of credit and lending, you will have no depositors and no bank.

[Abq_Sarah]

1. I have a hard time faulting

A bank that isn't issuing lines of credit and lending to failing or troubled businesses. The SBA won't do it either.

[ksoze]

4. Most businesses are "troubled" right now

This is not about handouts, it is about banks that have frozen credit lines or cut them to MOST small businesses.

Not failing ones, but working businesses. Did not seem to be much problem lending to failing BIG business. The crises gave cover for banks to freeze lending and sit on assets until they know which ones will blow up.

[Abq_Sarah]

6. If a bank issues a line of credit

Or guarantees a loan to a business that can't demonstrate it is capable of meeting its obligations, that IS a handout and it's no different than granting a mortgage loan to someone who isn't capable of paying it. I guarantee the SBA is not going to issue loans to any business on shaky ground without assets to cover the loan and neither should any private bank.

[ksoze]

7. Banks cut or froze LOC to many businesses

using the crises as an excuse. They still have not got things moving again, even if they got TARP money. What handout do you speak of?

[Abq_Sarah]

8. If you issue a line of credit or a loan

To a business that can't demonstrate the ability to pay, it's a handout. It is that type of behavior that got us into this mess.

[ksoze]

10. The bank talking points are missing the point

LOC and loans were frozen or cut for businesses regardless of their situation since the crises, irregardless of ability to pay.

[jwirr]

2. The same thing is happening in housing. They are lending money

but only to those who have 10-20% down payments. There are not going to be that many people who have that much savings to lay out at one time. I realize that this is a more stable approach but it is not going to increase buying. Many of us are broke.

[Kurt_and_Hunter]

3. Give money and credit to the customers

Trickle UP!

[Life Long Dem]

5. MSM is missing the mark.

[byronius]

9. Ten employees, here. Twenty years in business.

You what I need? Refinancing of business debt with some sort of long-term low interest loan. I'm hoping there's something in it we can do.

Both of the small businesses on either side of us have turned to dust. One after sixty years -- thirty employees, poof.

We're next. Anyone who sneers at this proposal isn't hooked in to small business, especially manufacturing, like us.

PS: Our health insurance just got jacked up 25%, for a total of a 60% increase in two years. The rep on the phone said 'costs were going up'.

Fricking bullshit. Last-minute profit-taking by criminal masterminds, is what it is.

[Thrill]

11. I believe they are guranteeing 90% of loans. I don't see why that wouldn't loosen credit

Also they can write off investments up to 250,000

They also are reducing fees for the loans

[ksoze]

13. The SBA already guarantees payment on 85 percent of a loan

up to $150,000 and as much as 75 percent on loans of more than $150,000. The administration is raising the guarantee to 90 percent

[PBS Poll-435]

12. The Treasury is buying debt-backed securites.

What is the worst that can happen? :shrug: