Stimulus Aids Small Businesses In Securing Loans

I have a former boss that was telling people he was applying for the loans because "everyone else is getting a bailout, why shouldn't I?" The problem is, the company didn't need a bailout of any sort. We were doing fine.

Unfortunately, what is being reported is not exactly true, while the SBA claims they are making these "loans" the truth is they only guarantee 90% of the loan. A Bank makes the loan and a large majority of the banks in the Tulsa area are not making loans to small businesses. When they rarely make a loan they require loan collateral of at least 110% of the loan amount, 20 to 30% equity by the borrower, and the borrower must sign personal guarantees...i.e. to get a loan the borrower must prove he does not need a loan. Instead of writing a "feel good" story about how the Government is helping people, you should write a story about how the Government and the local banks are strangling small businesses.

Borrowing does not stimulate a business...or a government for that matter. Borrowing only enslaves the debtor to the bank. Prosperity comes from profit and freedom....both of which our government does not want us to enjoy.