I know that's not how it's gonna be when the gov't has persons such as yourself thinking they are making it GREAT for us, when they are actually hurting us.
The gov't is stopping inovation by not allowing the freedom to pursue. Do you know how many people are happy to be mediocre rather than excel beacuse their thinking is "well if I can't GET BY the gov't will do it for me". That's not the job of the gov't....to help you get by. That is personal responsibility.
THe SBA....HA....what a joke. have you ever tried to get a loan with their "help". Impossible. I deal with a local, not national bank..have been for years. I walk in wave to the Pesident of the bank through his window, he walks out and invites me in. I explain to him what I need and why. I get it. A PERSONAL REALTIONSHIP...WOW. Built on years of trust and knowledge. He allows these loans because he knows I can repay them and I am not requesting $100,000.00 on a $16,000 a year salary. I am reasonable and loyal and pay my bills, BY MYSELF. NO GOV"T HELP. Below is an article about the SBA from a google search:
The most visible elements of the SBA are the loan programs it administers. The SBA itself does not grant loans with the exception of Disaster Relief Loans. Instead, the SBA guarantees against default certain portions of business loans made by banks and other lenders that conform to its guidelines. Disaster Relief Loans are issued directly from the SBA.
Contrary to popular belief, these programs are not generally for persons with bad credit who can't get bank loans, nor are they primarily used for startup funding; rather, the primary use of the programs is to make loans for longer repayment periods and with looser affordability requirements than normal commercial business loans. Also, a business can qualify for the loan even if the yearly payment would be the same as the previous year's profit, whereas most banks would want payment for a loan to be no more than two-thirds (2/3) of the prior year's profits for a business. The lower payments, longer terms and looser affordability calculations allow some businesses to borrow more money than they could otherwise.
Let me break this down a little further. The SBA IS NOT A LOANING INSTITUTION. It is only a guarantor. They guarantee repayment of the loan to a bank WITH YOUR MONEY!! YOUR TAX DOLLARS!! back the guarantee. Why do you have to borrow your tax dollars back? Why couldn't you keep a little bit extra of it originally and not have to REPAY YOUR MONEY?? What if instead of them taking your money to "GUARANTEE" a loan they would have let you make wise and calculated investments. You'd be wealthy...that's why.HELL, you might not need a guarantee to borrow your own money if they hadn't taken it in the first place. You might could have started your business DEBT FREE. Imagaine that a business started DEBT FREE....wow...think that will succeed? I do.
This is the BEST part.the primary use of the programs is to make loans for longer repayment periods and with looser affordability requirements than normal commercial business loans. Also, a business can qualify for the loan even if the yearly payment would be the same as the previous year's profit
Longer repayment-looser affordability- a business can qualify for a loan EVEN if the YEARLY PAYMENT IS THE SAME AS THE PREVIOUS YEARS PROFIT.....HUH??? So after I borrow MY money back from you... I have to give you all my profit back.....DUHH OK. I can't make a profit....in business???
WHY would you approve this loan?
Sounds like the housing market all over again. Can't afford it? let's string out the payments...payments on a house for a year equal to your entire household income? SURE YOU CAN HAVE THE MONEY. HERE YOU GO!!
The SBA is as a big of a joke as most all of the other gov't run programs.
Sorry so long, but want to get it ALL out there.
Sounds like bad business to me.
Re: Simple answer for all the political threads...
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