Moving Beyond the Credit Rhetoric

Yesterday’s announcement from President Obama pledging support for small businesses was welcome news . . . sort of.

Obama backed legislation intended to increase the maximum size of some SBA loans and also committed to additional Treasury Department support for smaller community lenders.

The idea behind increasing maximum loan sizes is to ensure that more small business owners and entrepreneurs can get access to the credit they need to expand their operations and create jobs, something that is sorely needed to give the economic recovery some legs.

While this legislation would help some, I still don’t think it would do much for the majority of small businesses who either  don’t wish to take on more debt at this time or who can’t qualify for loans. I can’t understand why we continue to focus almost exclusively on the capital side—even in good times, small businesses have a hard time qualifying for loans. New SBA maximums or not, they will still have to meet stringent lending requirements, even as their bottom lines shrank and their balance sheets tanked in many cases this past year.

I also find it ironic that built into the aid for the small community banks is a caveat that they must pledge to lend to small businesses. While I welcome this, I wonder where that clause was when the big banks got billions. Instead, Citi, Advanta, and others are cutting off credit cards with no warning to their small business clients at the same time they’ve tightened up their lending.

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About Smart Companies Thinking Bigger®

Kelly Scanlon is the owner and publisher of Thinking Bigger Business Media. She recently finished a term on the national board of directors of the National Association of Women Business Owners, and was the national chair from 2010-2011. An advocate for small business owners, Kelly sits on numerous boards and committees to advocate on behalf of small business owners. She has won several awards for her advocacy. Among them are the 2011 United Nations NGO Positive Peace Award on behalf of Kansas City area small business owners, the U.S. Small Business Administration's Region VII Women's Business Champion of the Year in 2009, and the Women in Business Advocate of the Year from the State of Kansas in 2006. In 2002, she won the SBA's Region VII Small Business Journalist of the Year Award (Missouri, Iowa, Nebraska, Kansas). Whatever your business stage—aspiring, startup, established, mature—Thinking Bigger Business Media has the resources you need to grow to the next level. We are a resource organization dedicated to providing the strategic, "how-to" information small business owners need to become more productive and more profitable. We also provide information that helps owners connect with resources within the business community that can help them grow. We deliver that information through a variety of media products and other channels easily accessible to business owners.
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