Comments on: President provides more access to credit for small business? http://terry-neese-blog.com/president-provides-more-access-to-credit-for-small-business/ Insights on Women, Minorities & Small Business Benefits | NCPA Thu, 09 Sep 2010 10:49:04 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Dona Storey http://terry-neese-blog.com/president-provides-more-access-to-credit-for-small-business/comment-page-1/#comment-1889 Dona Storey Fri, 30 Oct 2009 11:45:55 +0000 http://terry-neese-blog.com/?p=350#comment-1889 I am often hesitant in seeing easy or extended credit as the first answer to all small business problems. Most first time borrowers for small business loans actually think the SBA is lending them the money when in fact the loan is guaranteed by the SBA when a bank makes the loan to a small firm. In addition many people do not understand you go through the same lending analysis that is common in most banking institutions.I do agree that loans for temporary short term needs or lines of credit for inventory are necessary but too often small firms see living off of credit as an aceptable norm for exisiting. I support finding ways to faster profitability versus easier credit as a sensible startegy for growing small businesses, the financial engine of this country...not to even mention the real American Dream!I think we need to examine either a flat tax concept which truly levels the playing field or the lifting of many taxes applied to a firm within reasonably defined parameters. Those parameters can be gross sales or number of employess such as is already stated in the small business size standards and definitions as set by the SBA. I am often hesitant in seeing easy or extended credit as the first answer to all small business problems. Most first time borrowers for small business loans actually think the SBA is lending them the money when in fact the loan is guaranteed by the SBA when a bank makes the loan to a small firm. In addition many people do not understand you go through the same lending analysis that is common in most banking institutions.I do agree that loans for temporary short term needs or lines of credit for inventory are necessary but too often small firms see living off of credit as an aceptable norm for exisiting. I support finding ways to faster profitability versus easier credit as a sensible startegy for growing small businesses, the financial engine of this country…not to even mention the real American Dream!I think we need to examine either a flat tax concept which truly levels the playing field or the lifting of many taxes applied to a firm within reasonably defined parameters. Those parameters can be gross sales or number of employess such as is already stated in the small business size standards and definitions as set by the SBA.

]]> By: Brian W. http://terry-neese-blog.com/president-provides-more-access-to-credit-for-small-business/comment-page-1/#comment-1849 Brian W. Thu, 22 Oct 2009 15:30:46 +0000 http://terry-neese-blog.com/?p=350#comment-1849 P.J. O'Rourke was correct when he said, "giving money and power to government is like giving whiskey and car keys to teenage boys." It is a mistake to rely on the government to create capital for small business investment. The government doesn’t create capital – it regulates it, redistributes it, and taxes it. The most government can do is take capital from one person to give it to another. The best way to stimulate the economy, and actually create capital for small businesses, is to reduce the size and power of government and unleash the unique entrepreneurial spirit of the American small business owner. The government should get out of the way by cutting the payroll tax, allowing immediate business expensing and lowering taxes. Congress should quit its schizophrenic approach to tax policy and enact permanent tax cuts that are predictable and clearly understood. Small businesses crave certainty as they make decisions to hire workers or expand operations. Temporary economic policies (like stimulus bills and temporary tax credits) only serve to perpetuate recessions as small business owners wait to see what Congress is going to do from year to year. P.J. O’Rourke was correct when he said, “giving money and power to government is like giving whiskey and car keys to teenage boys.”

It is a mistake to rely on the government to create capital for small business investment. The government doesn’t create capital – it regulates it, redistributes it, and taxes it. The most government can do is take capital from one person to give it to another.

The best way to stimulate the economy, and actually create capital for small businesses, is to reduce the size and power of government and unleash the unique entrepreneurial spirit of the American small business owner. The government should get out of the way by cutting the payroll tax, allowing immediate business expensing and lowering taxes. Congress should quit its schizophrenic approach to tax policy and enact permanent tax cuts that are predictable and clearly understood. Small businesses crave certainty as they make decisions to hire workers or expand operations. Temporary economic policies (like stimulus bills and temporary tax credits) only serve to perpetuate recessions as small business owners wait to see what Congress is going to do from year to year.

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