Monday Links: Obama and the Bankers

Posted by: John Tozzi on December 14, 2009

Obama presses top bank execs to expand small business lending, the FT’s Anna Fifield reports.

Bank of America pledges to boost small business lending by $5 billion in 2010, Reuters reports. (The bank loaned $12 billion in small business through the first three quarters of 2009 — a figure that includes business credit card lending.)

Credit unions say regulatory changes could allow them to make billions more in small business loans, Michelle Samaad reports in the Credit Union Times.

Uncertainty over the extension of subsidies to help laid-off employees buy health insurance worries businesses and workers alike, Andy Miller reports at Kaiser Health News.

The U.S. Energy Dept. funded clean tech companies to the tune of $13 billion in the first three quarters of 2009, compared to just $2.7 billion venture capitalists invested, Neil King Jr. writes at the WSJ.

Reader Comments

nothingbutlimericks

December 15, 2009 9:24 AM

OBAMA AND THE BANKERS

He says that the banks should lend more,

So we Americans can spend more,

Go grab your plastic,

Let's do something drastic!

Go buy a GE or Kenmore.

nothingbutlimericks.blogspot.com

Carol Cross

December 15, 2009 12:46 PM

The President has a problem with the bankers because, of course, the bankers don't want to loan on "unsustainable" small businesses -- even with the 90% SBA guaranteed loans -- until the secondary market in " government guaranteed securities" makes a recovery.

Apparently it is on its way and BIG BUSINESS Franchising will again get help because of government policy to help "small business."

Also, CIT is up on its feet again after taxpayers "ate" 2.5 bil(?) in the bankruptcy proceedings and is again willing to make loans to its small business customers, many or most of which are franchisors/franchisees.

Evidently, "short term" policy goals always win out because "long term" solutions are too politically painful for the policy makers to face.

If you read Mercutus on Banking --The SBA --George Mason University --you understand that a good proportion of SBA loans fail at some time before the end of the term of the loan. Therefore, the SBA and the Congress knowingly subsidize small business knowing that in the case of franchisees, they are subsidizing BIG BUSINESS franchisors.

The SBA, of course, knows this, but continues to subsidize small business and BIG BUSINESS FRANCHISORS whose "founding" franchisees fail out at a rate that is unknown to the public who buy franchises because of dishonest and ineffective regulation of franchising.

http://thegreatfranchisingrobbery.blogspot.com

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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