Banks And Small Business Thumbs Down

Barack Obama is touting the $30 billion unfunded “jobs bill” that he signed this week.  The bill will do nothing for jobs and will bury America in another $30 billion in debt.  Obama and the Democrats would have you believe that businesses have been out there clamoring for loans but the banks just haven't had the money to lend.

The “jobs bill” bill has $30 billion worth of government guarantees for loans to businesses made by smaller financial institutions.  First, most small businesses aren't out there trying to borrow money right not. Secondly, the smaller banks out there have plenty of money to loan  just no customers. The owners of these businesses simply don't want to put whatever wealth they still have on the line while they're faced with the uncertainty of Obama's economic policies.

Small businesses have no idea what their tax structure is going to look like. They're sitting and waiting for over 150 new sets of regulations to be written by Obama's essentially anti-capitalist cronies, and they are scared to death of Obamacare. They're simply not in the mood to borrow and invest while so much uncertainty exists.

According to Obama, the “jobs bill” will make money available to loan to businesses so they can get out there and create jobs.  Why do the small banks need this money when they're already sitting on over $1 trillion dollars in excess reserves they could loan if they want to?  That’s easy... the small banks DON'T need the money. The AP reported last week that bank executives are reporting that their customers don't even WANT loans! Expansion plans are on hold until these businessmen see what is going to happen to our economy. The National Federation of Independent Business said that 91% of their members say that all of their credit needs have been met. The demand simply isn't there.

There is another reason the banks and small businesses don’t want the money.  They have seen what Obama has done to the businesses that have taken government money.  What strings would be attached to these guarantees? Have all the rules been written yet? Will the banks have to jump through countless hoops to loan the money?

Will political correctness considerations of race and gender come into the picture? How many banks will find themselves being investigated for failure to have the proper racial and gender ratio of borrowers?

It has been suggested businesses who apply for these loans, and who are turned down, will have appeal rights? Appeals? Do banks really want to accept this money and try to loan it to borrowers if applicants with no good business plan or bad credit can start to tie banks up with appeals?

What hoops will small businesses have to jump through for the loans?  How much control of these businesses will Obama want?  Will Obama and his cronies try to run their businesses? 

Obama touts another bill that accomplishes nothing.  Small businesses and banks don’t need it or want it.

Which party are you going to vote for in 33 days? The Paycheck Party or the Food Stamp Party?

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