(AP) NEW YORK – President Barack Obama’s $ 30 billion small community business lending program faces one big challenge: many of the community banks and businesses it’s supposed to help don’t want it.
The lending program is part of a bill that passed the House of Representatives on Thursday and now awaits the president’s signature. The legislation contains a mix of tax cuts and credits aimed at helping small businesses. The centerpiece of the bill is an effort to make billions of dollars available to community banks for loans to small businesses.
It seems like a simple effort to unclog a credit pipeline that has been blocked since the financial meltdown two years ago. But interviews with seven community bankers, as well as small business owners, show a reluctance to participate.
“People in my constituency can’t get credit, and this will get money out to small businesses, who are the engine of job creation for this country,” said Republican Sen. George LeMieux of Florida, who co-authored the amendment that created the lending program.
Bank executives say their customers don’t want loans, even at low interest rates, because the sluggish economy has chilled expansion plans. Some say the federal money isn’t worth it because they fear it will come with too much regulatory oversight.
“We have taken a strategic decision not to have our primary regulator, the government, also be a partner in our bank,” said William Chase Jr., CEO of Triumph Bank in Memphis.
Chase said the bank already has enough capital to meet the paltry demand for loans. “Our business customers are mired in uncertainty and are reluctant to invest in their businesses,” Chase said.
Ninety-one percent of small business owners surveyed in August by the National Federation of Independent Business (NFIB) said all their credit needs were met. Only 4 percent cited a lack of financing as their top business problem. Plans for capital spending were at a 35-year low.
Jack Rajala just laughs when asked if he wants to take out a loan today. He’s in a fight to save his family’s lumber business that has been buffeted by the recession and housing meltdown.
http://kstp.com/business/stories/S1759224.shtml?cat=1
Answer by Proud Progressive
Just because a stimulus doesn’t instantly fix everything does NOT put it in the “failed” category, contrary to your claims.
“some businesses say….” they don’t want loans.
Ah, but many do and can’t get them. This is to help THEM. Some businesses are doing well and want to expand.
“SOME” does not mean “ALL”. so if you don’t want a loan, don’t take one. simple.
Dave, what an assanine thing to say. Our soldiers success and safety is more important than your political agenda.
Answer by Dave87gn
of course. Obama is spending more on afghanistan. which begs the question…which country is MORE important to him
If the banks he needs to implement it do not want it than yes, of course it is another bamboozle Obama corruption style, porkulus.
Of course, it has nothing to do with helping the economy or others – it is simply to advance control for the totalitarians.
Totalitarianism (or totalitarian rule) is a political system where the state, usually under the control of a single political person, faction, or class, recognizes no limits to its authority and strives to regulate every aspect of public and private life wherever feasible.[2] Totalitarianism is generally characterized by the coincidence of authoritarianism (where ordinary citizens have no significant share in state decision-making) and ideology (a pervasive scheme of values promulgated by institutional means to direct most if not all aspects of public and private life).[3]
Totalitarian regimes or movements maintain political power through an all-encompassing propaganda disseminated through the state-controlled mass media, a single party that is often marked by personality cultism, control over the economy, regulation and restriction of speech, mass surveillance, and widespread use of state terrorism.
In short -Communism, Marxism, Stalinism, Socialism, Obamaism – are all forms of a Totalitarian government.
Probably like the $ 29-billion “teacher” money….that went into the Democrat slush fund!!!!!!!!! Scums!!!!!!!!
…”Barry Soetoro” (…you seem to know him by his political name, Obama) is a “Nanny State”, tax and waste, entitlement PIMP ! (Period ! …end of story)
small business is not hiring as they do not know what obama will try to regulate next. small business will get hit the worst with the health care costs and taxes. they are not going to borrow or hire with this administration. large corporations are hoarding their profits and not hiring. they tried to tell this to obama but as usual he is not listening to the american people, as he knows more what we should have.
we really do not need to worry about unemployment however as the government is growing bigger and bigger – more control over us. one more regulation added to the existing nightmare of health care regulation.
As if the Democrat health care bill did not make the majority of American citizens angry enough, the Democrats chose to throw in one last ingredient in the ObamaCare reconciliation bill that just might guarantee a Republican landslide in November. Thanks to the Democrats, the most hated agency in America, the IRS, just got 16,500 agents bigger. By sprinkling in an additional 16,500 IRS agents into their health care mix, the Democrats may have just placed upon their own backs a backbreaking straw.
no. Next.
You cannot borrow and spend to fix a decade or 2 of too much borrowing and spending. It’s a failure
Name any other ‘failures’?
Continuation of the Bush Jr. Wall Street bailouts stopped the free fall of our financial markets.
Auto industry loans saved hundreds of thousands of jobs.
Cash for clunkers pumped much needed cash flow into not only the auto industry but the economy in general.
Stimulus has created or saved over 3 million jobs, infused hundreds of millions into local economies, and completed long over due infrastructure projects.
Maybe you see them as failures simply because the Republicans have done nothing, offered nothing, and are continually obstructing anything and everything.