America's Best Business Practices

So why do you suppose the Government wants to get involved with Small Business via the TARP or The American Reinvestment and Recovery Act of 2009 ($787 Billion bailout money). Does anyone really think that the Obama Administration is going to treat Small Business any different than say AIG, B of A, Citigroup, Chrysler or GM to name a few. Of course not.

The good old Government is going to move in on all the Small Business’s that accept the money and we the tax payer is going to own a part of your company with that magnificent Washington tram to help you out (if you do as they say). They are going to tell you how big to grow, what the product line should be, cut you salaries, force you to accept the Obama Administrations views (they now own you company and its payback time).

Mr. Obama did not say the Administration was going to provide additional funding to the SBA for SBA loans, he said he was going to make available part of the American Reinvestment and Recovery Act of 2009 ($787 Billion bailout ) and TARP funds ($700 Billion bailout) available to the SBA. Everyone must know that with this fund comes a very big string and it’s called the Treasury Department. They’ll help you decide how much of your company now belongs to the Government as a recipient of Bailout money or TARP funds.

So not only will the Obama administration have control over most of the larger financial institutions in the country, but also 2 of the 3 auto companies, soon the internet (within 3 weeks this is going to happen), Healthcare etc. With money pouring into Small Business, the Obama administration now has control of almost all of America because everyone now owes something and remember part of the giving hand.

So Small Business, the backbone of America, take your money and wind up working for the Obama Administration, doing what they tell you to do, what to build, to whom you can sell and how m much money you can make and pay your employees. What a system a man with virtually no experience telling all of American how to run their companies and what product to build and how much that can pay them for all the hard work they have put in.

George, thank you for your thoughts. However, I think you are a little off target as it relates to these SBA-backed loans to small businesses.

1. The SBA does not make loans, they only guarantee them. So when a small business owner takes out an SBA loan, they are borrowing from a bank and not the government.

2. None of the American Reinvestment and Recovery or TARP funds goes directly to small businesses as it did to the entities you mentioned. It goes to the banks that loan to small businesses.

3. SBA-backed loans have been around for many decades. As far as I know, no new strings have been added, although the fees and terms are much more favorably than in the past.

Therefore, I believe SBA-backed loans are completely different from the concerns you mention. However, I do appreciate you thoughts as well as any dissenting thoughts.

Anyone one who makes a loan or invests money does have specific objectives which must of necessity be inline with the borrowers or the project promoters otherwise there should be no deal. If a borrower does not like the terms of the loan, they just walk away, they cannot take the money and tell the financier to take a walk!

TARP is an investor in AIG …. et al, if they do not like the terms, they can read the fine print for the exit terms … they sure are experts at fine print.

President Obama did not walk into the banks and force them to take TARP funds, the banks came running for the funds, public funds have certain responsibilities. If you are a good business manager you cannot run a gambling outfit with clients funds, free enterprise or not.

If the banks had not got TARP fund they would have gone the way of LEHMAN and we would be saying Obama failed American Icons!
The banks that are involved with SBA loans understand that the government has both business and social objectives in providing guarantees for these loans.

Maybe George would like President Obama to cut checks to the banks and not ask or require that the business and social objectives be met? Like welfare for corporations?

Mike and David, thank you so much for your eloquent responses.