lawgator1
Senior Member
- Joined
- Aug 8, 2005
- Messages
- 72,756
- Likes
- 42,931
1) With last year's stimulus money, the budget was $1.8 billion. Its normally about half that.
2) The current system has the SBA guarantee the loan, meaning that it is still necessary to find a private lender to actually provide the loan.
3) The SBA in 2010 experienced some interesting trends. In some sectors of business none of the business failed. In others, all of the businesses failed.
My proposal:
1) Make SBA loans direct from the government to the borrower. Use the same criteria as for guaranteeing in the past, but with an eye to excluding the areas with the highest failure rates.
2) At one, three, and five year intervals, put the note up for sale to private lenders. If the business has worked, a private lender will want to take on the note and collect the interest and have a future customer relationship with the successful business.
3) Increase the funding for this to $50 billion or more. Infuse the money immediately. But, tie it to businesses that will hire. In other words, no loans for home-based businesses (unless they will hire someone for ancillary part of the main business). Review this requirement every 6 months with each small business.
Everyone says it is the small businesses in this country that generate the jobs. You've got a lot of people out there with ideas and experience but no work and no income. Let them propose and start a business that will employ people and then create an opportunity for the private lenders to buy up the paper.
2) The current system has the SBA guarantee the loan, meaning that it is still necessary to find a private lender to actually provide the loan.
3) The SBA in 2010 experienced some interesting trends. In some sectors of business none of the business failed. In others, all of the businesses failed.
My proposal:
1) Make SBA loans direct from the government to the borrower. Use the same criteria as for guaranteeing in the past, but with an eye to excluding the areas with the highest failure rates.
2) At one, three, and five year intervals, put the note up for sale to private lenders. If the business has worked, a private lender will want to take on the note and collect the interest and have a future customer relationship with the successful business.
3) Increase the funding for this to $50 billion or more. Infuse the money immediately. But, tie it to businesses that will hire. In other words, no loans for home-based businesses (unless they will hire someone for ancillary part of the main business). Review this requirement every 6 months with each small business.
Everyone says it is the small businesses in this country that generate the jobs. You've got a lot of people out there with ideas and experience but no work and no income. Let them propose and start a business that will employ people and then create an opportunity for the private lenders to buy up the paper.
