If we really want to get out of this recession in one piece and prevent a double dip from our current slow-growing expansion period, we are going to have to help our small businesses succeed. Currently, the United States has the Small Business Administration, an agency which oversees the small business sector. However, it appears to be quite bureaucratic, and way too politically correct to truly solve the challenges that most small companies have today in our economy.
Whereas, the recent SBA initiative which guarantees 90% of the money in the loans for small businesses by the taxpayer, appears to be a pretty good move, unfortunately, commercial credit is so tight, that local banks in small communities are worried about having the Reserves necessary to meet the banking requirements and regulations and therefore, they will not loan businesses any money at a time when these small companies need it the most.
Additionally, the small business administration is run by bureaucrats, not business people. Most of those individuals that work in the agency have never run a small business of their own, and yet, they are in charge of helping America's greatest asset. After all, it is the smaller companies, which employ 75% of our work, and the people running these small companies account for 10% of our population. Until we can fix the small mom-and-pop sector, we can not fix our economy.
Even if we solve the systemic problems of our economic banking system, without helping to all the little businesses in our country, we can never fully recover or put America back to work. Therefore, SBA failures in their mission or lack of performance will cause the nation to go into a double dip recession. I hope you will please consider this.