Read more about the article Small Business Finance Bill passes – So What?

Small Business Finance Bill passes – So What?

Do you often wonder how this country gets along with the Pollyanna views inside the Beltway, mostly comprised of those who have never had to meet a payroll? The Senate passed the Small Business finance bill last week as a few Republicans crossed the aisle to provide the needed votes. The House is expected to quickly pass this version. More later … but ….

So What? It’s a $30B bill so it sounds like a lot of money … but so did the TARP $750B number when it was announced … and it’s still a long way from fully invested. The NYT claims it will help “credit-starved businesses” … says who? Read Uncertainty is killing business – NOT credit in which I review why credit availability is NOT what’s killing small business. If you’re uncertain about what uncertainty we’re certain about … read the WSJ verbatim quote to be reminded of the painful litany of  the economic and regulatory  quicksand on the road to recovery.

[pullquote]Are you uncertain about what uncertainty we’re certain about?[/pullquote]

Sure, there may be qualified businesses struggling to get credit. It is tougher out there, the underwriting standards are less flexible … but will the economy recover when credit is extended to small and middle-market businesses? No, (more…)

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Read more about the article “There you go again” ….

“There you go again” ….

I think that line is attributed to Ronald Reagan’s impressive debate performance against Jimmy Carter in 1980 … but just the same, it applies to the stream of recent articles about business lending in the middle market.

The WSJ discusses a report that banks have eased their credit standards in recent months. Of course, there’s no metrics to confirm that, or what it means … and you’ll waste a lot of energy finding middle market businesses that concur. More realistically, there is little demand for credit because businesses have little confidence in economic growth in the near term. (more…)

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Read more about the article Start-Ups Create Lasting Jobs

Start-Ups Create Lasting Jobs

A recent report from the Ewing Marion Kauffman Foundation entitled After Inception – How Enduring is Job Creation by Start-ups?”, uncovered several notable findings about the job creation power of start-ups:

  1. The number of start-ups that flourish and create jobs balances the jobs lost by companies that close.
  2. 80% of the jobs created in the first year are still here after 5 years.
  3. Companies that start during recessions general catch up in hiring after the recession ends.

So what? (more…)

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