Thursday, September 16, 2010
Small Businesses are getting help
The senate passed a bill that will next go on to the House, then to President Obama where it will likely be signed into law. This bill is intended to help small businesses by increasing their ability to receive credit, which in turn will allow them to increase hiring. An estimated 500,000 jobs will be created, in all types of markets, thanks to this bill. The increased credit and job creation will lead to growth within the businesses, and hopefully be one way to stir the economy back up.
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8 comments:
This is good for the government to instate for small businesses. Banks do not want to loan out money right now because they are scared they will not receive it back. The bill will allow for small businesses to rebuild there companies to what they used to be before the recession hit. the unemployment rate is still very high as well and if this will get people back to work then I would be all for it. The government will also save money. the people unemployed right now are just sitting around collecting checks from the gov't. This bill is a good idea and should pass.
Yeah but it also has the potential to back fire because we may be giving loans to business that are not productive and should be leaving the market under normal market forces. Isn't this similar to what caused the crash in 2008 with the banks giving out bad mortgages and subsequent burst of the housing market? I understand maintaining and providing jobs is important and there are advantages to having small businesses but we have to make sure we are not plugging holes on a sinking ship.
this could be a problem if the right businesses do not get the credit.. If a bunch of the wrong businesses get this credit and default that could lead to bigger problems financially.. Instead of making it easy to get credit how about tax breaks or something, giving them the chance to save a little more to invest back into themselves..
I agree with the bill and think it should pass. The unemployment rate is still very high and as Neil mentioned if they do not return to some kind of work, they will just continue to receive unemployment for doing nothing. This bill will relieve some of the burdens of unemployment while giving potential long term growth to entire economy.
This is definately one of the instances where a redistribution of income in important for Americans. The unemployment rate is still very high and small businesses need an advantage to grow and create jobs.
Regardless of whether the small businesses receiving aid will end up being financially successful, they will at least spend the money when they receive it rather than hoarding it like the big businesses and banks. An influx of cash to increase employment and consumer spending is necessary to increase growth for economic recovery.
This bill is a great idea in my opinion. Small business don't receive enough credit in the economy today. Giving the small businesses a better chance to receive credit will make a lot bigger chance than many anticipate. Being that the unemployment rate is so high, this couldn't come at a better time. The unemployment rate will drop, spending will likely increase, and long term growth for the economy. The only downfall of the bill is if irresponsible companies try to get the credit, receive it, and then default because they are unable to make the payments.
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