Being able to borrow isn't the biggest problem the small business has.
that varies from business to business, but for many businesses today, inability to renew credit lines is their foremost concern
They aren't going to borrow if they don't know if they can pay it back.
sure they are. what do they care if they fail to pay it back (so long as they are not personally guaranteeing repayment of the loan). if the business folds for lack of access to capital and is unable to repay that loan then they are out of a job anyway
This administration has caused so much uncertainty no one is going to start a new business or expand when they have no idea what's coming down the road. They need permanent tax cuts.
you must have loved the last (mis)administration, which had as its answer for any problem: "tax cuts". notice that the financial melt down took place at the end of that "tax cutting" regime. that alone should tell you something (whether you choose to listen is another story)
do a google search for GAO report of tax payment. it will reveal that most corporations do NOT pay any taxes. taxes are an expense of doing business, where loopholes cannot be found. a few more percentage point in taxes is not going to affect a business unless it is so marginal that those few point make the difference between profitability and insolvency
no body and no business wants to pay more taxes. but to say that the tax rates, now the lowest in half a century, are adversely affecting business performance is beyond laughable
They need to know what's in the HC bill. They need to know what new regulations are coming their way concerning any cap and trade or energy bill.
Borrowing money is probably the farthest thing from their minds.
companies, just like consumers, would prefer to know what is on the horizon which will impact them. but we have had ADA requirements, EPA requirement, labor requirements imposed on business in the past and they continued to operate within those imposed constraints. the business of business is to make money. they will work around any imposed restraints to continue to make money. what affects them also affects their American business counterparts. now i will agree with you, that where newly imposed constraints impact American businesses where they do not impact the foreign competition, that aspect does adversely affect American business operation and formation in this now global economy
I'm glad the Rep. are continuing to say no to more spending.
you are more optimistic than i, as i see no sign that government spending is being reined in. my hope is you are right and i am wrong on this point
People will get off their money when they are comfortable about investing it.
actually, people, and especially businesses, are still trying to gauge in which direction the economy is headed. it is smart to hoard money during this deflationary period. what can be bought today might be bought cheaper tomorrow
and the banks unwillingness to lend is also tied to that factor
however, the multinational banks were infused with American taxpayer money while American community banks were not. that American taxpayer infused capital of the multinational banks is being lent to the south koreans, the israelis, the brazilians, the chinese. meanwhile, American small businesses are dying on the vine from lack of cash flow. the community banks, which are the predominant lenders to American small businesses, were hammered by the meltdown, too. and their profitability, and liquidity, suffers also from increased reserve requirements imposed after the meltdown, as well as from the decline of main street
the republican refusal to provide more capital to community banks is in direct opposition to America's needs*. small business is the generator of most new jobs. we have a consumer economy dependent on an employed, wage earning public. providing community banks with the means and the imperative to lend to America's small business community is essential if we hope to pull out of this (notso) Great Recession
* full disclosure. one of my company's business services is to write government guaranteed loan packages for community lenders. the potential for my bias is evident
