Save Our Small Business

Small Matters: U.S. debt hurts small business, and all of us | Philadelphia ...

The debate over the debt ceiling and the size of the federal budget deficit has put the spotlight on the "error of our ways" - trying to live beyond our means today at the expense of our future.

The federal government has developed the bad habit of spending more than it is willing to ask us to pay for with taxes. We get all those "goodies," but don't have to pay for them with higher taxes. Instead, the government borrows the money, to be repaid some time in the future.

Assume for the moment that there is no "rest of the world," it's just us. Then, a simple truth is obvious: If the government spends $1,000 and only taxes us $600, it must borrow $400. But it must borrow the $400 from us. When we lend money to the government (through buying government bonds), we can't spend it. So, either way, the government has $1,000 to spend and we have $1,000 less to spend.

Total spending in our economy is the same, it's just a question of who spends the money, us or the government. This is a political question that we try to answer at each election. If I get an extra dollar, do I want to buy what private firms make or what the government makes?

A second important truth: If we don't save some of our money and put it in the "bank" (this includes insurance companies, stock brokers, and all that), then there is no money to be borrowed to "invest" in productive assets (finance the purchase of a new car or house or expand a business and hire new workers).

In 2007, consumers saved only about 1 percent of their after-tax income, a poor performance. It was 10 percent in the 1970s and early 1980s. Chinese consumers save 40 percent.

Small businesses get more than 90 percent of their operating funds from banks, which must depend on savers for the money to lend into the community.

If the government runs a $400 deficit and borrows the money by selling Treasury bonds to us, it reduces the amount of money available to finance investment. Since the Treasury will pay any interest rate it must in order to borrow what it needs (Why not? We pay it in taxes), private borrowers, who are sensitive to interest rates, will get whatever is left.

Entrepreneurs Uncensored: Save Our Businesses | BrandMakerNews

Why are small business owners– the job creators, community leaders, and innovative thinkers of America, often ignored and left to fend for themselves? We hear political speeches about how important the entrepreneurial spirit and small businesses are to our country, but the resources on the ground too often fail to back up those claims.

As many entrepreneurs are struggling to keep their doors open, we must listen to their concerns. Only by listening to these concerns will we actually begin to provide the resources needed to build strong businesses and create new jobs for our communities.

Where is the help? Small business owners in America are speaking out. Here are the challenges they face on a daily basis…

There’s no help unless you can prove sales are 3x that of a loan. “My store is located in a so called federal disaster area by the SBA since the main mall across the street from me burned down. They told me I could qualify for a loan since area traffic has been significantly reduced. I did everything they told me to do, only to learn they believe I would not have the sales to pay back the loan. I said no fooling, traffic has been reduced from the fire, and you offered me the loan. It is silly. But besides the SBA there really is no help unless you can prove that sales are almost 3 times that of a loan. Which is hard to do since people are holding their money because they are unsure where our economy is going.” -Jonathan Nowling, Rock Hill Lavender

You can’t have credit because you don’t have credit. “Im a sole proprietor so my personal credit is my business credit, so to speak. I have worked very hard to clean up my credit rating. I have one thing left on the report that I will pay off this month. Can I get credit at all? No. Why? I have no clue, other than ‘I have no credit.’ Kind of an oxymoron isn’t it? You can’t have credit because you don’t have credit. I can’t even get overdraft protection on my business checking account. My car died over 6 months ago. I’ve tried to get financing for a used car and can’t. Although car dealerships tell me they can get me into a new car with payments over $450 a month. I need a car for my business. I’m a PC tech for gosh sakes! But I’m being responsible in saying I’m not comfortable with new car payments at $450 per month. If an invoice doesn’t get paid by one of my customers, I’m screwed! You attempt to be responsible and they try to over-extend you and isn’t that what got the economy where we are today? All this hype about the banks willing to help you is bull. At least this small business – and I mean really small business – doesn’t see it.

Small business problems in the poultry industry, Hearings before the special subcommittee of the Select Committee on Small Business, House of Representatives, Eighty-seventh Congress, first session, pursuant to H. Res. 46 ...

Congressional Record

Steps to Small Business Start-Up

Hearings

Brewing up a business, adventures in entrepreneurship from the founder of Dogfish Head Craft Brewery