Home > Economy, Business & Finance > A $30Billion Stimulus Bill: The Disconnect Continues

A $30Billion Stimulus Bill: The Disconnect Continues

Today, President Obama announced the signing of a $30 Billion stimulus bill that is a combination of tax cuts and loan programs aimed at helping small businesses.  I can say this; as a former small business owner this program really doesn’t get me excited to take action.

1: You give me tax breaks for capital purchases, thanks that is great! If I use it, I will do so with a view towards increasing productivity, maybe buying some new software or hardware; which will possibly mean cutting staff levels, especially in this economy.

2: I have never used a business loan for hiring staff; I hired staff when I saw a pickup in customer demand. Does this administration actually think a business owner will take out a loan just to hire new people and pay additional payroll?

This administration and big business is totally disconnected from main street and reality.

If this, or any administration is serious about developing solutions, they have to look upstream to the American Consumer, the American Family and help spur the demand side of the equation. You can give a small business access to cheap credit all day long, their not going to use it.

And this is not only government policy issues; todays large corporations should be just as responsible and accountable for their apparent nearsightedness.

Create some value already.

If I am a small business owner, presumable an S Corp, I dont want a new credit card, I dont want a new loan, I want new customers and sales. I want real organic growth. I want to make a difference. I want my my gross margins to cover my overhead, make a fair living and sleep well at night knowing we are doing a good job for our customers and associates.

This bill is nothing more than a bailout, on a smaller scale, for local community banks who are stuck with underwater commercial real estate loans. At the end of the day, my guess is that 20% of the stimulus money will actually make in the form of small business loans.

Don Sedy

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