'Mr. Beef' goes to Washington

[babylonsister]

'Mr. Beef' goes to Washington
Posted March 4, 2009 8:00 AM


Mr. Beef, in the 600 block of Orleans, in Chicago: Midwest Bank has filed a foreclosure lawsuit to collect several hundred thousands from the restaurant. (Photo by Antonio Perez/Chicago Tribune)
The Swamp

by Mark Silva


The owner of a Chicago fixture facing foreclosure -- Mr. Beef Deli -- will offer himself to a congressional committee today as evidence of "the impact --or lack of impact'' that federal bailout funds are having on small businesses.

Joseph Zucchero has a beef. He opened his River North restaurant in 1979, and has built a thriving business. Yet, he maintains that his banker, Midwest Bank, which collected about $85 million of the Treasury Department's bank bailout cash, has cut off his line of credit.

He faces foreclosure.

"I do not need, nor want, a bailout from the taxpayers. I only want the banks to be fair," Zucchero says in a written statement. "Many small businesses are being starved of needed lines of credit or are having their lines of credit not renewed upon maturity. Not only have I seen and heard this from a variety of small businesses, but I have personally lived this nightmare."

more...

http://www.swamppolitics.com/news/politics/blog/2009/03/mr_beef_goes_to_washington.html

[MADem]

1. That is a crying shame, that.

If he's been in business for thirty years, he must have a decent customer base and product that people want to buy.

It's going to change the whole paradigm of small business ownership if credit isn't loosened for people like this guy. You'll have to "be your own banker" in essence, and with less competition since most folks can't afford to do that, prices will go up.

[Captain Hilts]

2. Hillary's Urban Eatery closed. Damn.

http://www.yelp.com/biz_photos/vmx96q3nOoZs75sdqY0a8g?select=YrXY4klExf3gFf_rBUuxlQ

[KharmaTrain]

3. Mr Beef? NOOOOOOOOOOOOOO!!!!!

This requires civic action, damn it! Mayor Daley, step in and raise property taxes or something to save this place. :rofl:

Honestly, it's sad. This is just one of many indirect victims of the economic implosion. People who work hard and play by the rules but are screwed cause they can't get credit or have to accept obscene interest rates. The GOOP scream that taxing those making over 250k a year will do this to small business...BULLSHIT. Here's a textbook example of how "Raygunomics" gone wild destroyed small business.

[Still Sensible]

4. Despite the lip service republicans pay to small business

The fact is they only do things that benefit small business as an afterthought--or if something they ram through to benefit big business happens to accidentally aid the small business person.

In this case, why don't we allow the Small Business Administration to be a banker of last resort and let them make and manage loans for the small businesses they serve? There are SBA loans today, but the agency is basically just a guarantor. It would be less costly, more efficient and effective IMO if the SBA did it themselves. With banks not lending the small business is screwed.

From the SBA website:

"It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions and does not offer loans to small businesses."

[KG]

5. Thank Gawd it Passed!

:eyes: