Is the Government Pro-Small Business?

Last month, we asked for readers' opinions about the government and how they contribute (or damage) small business. While the official results will not be released until the September issue of The New York Enterprise Report, here are few interesting comments we received.

What do you think?

What should the government do to help small business now?

“Remove the onerous costs of environmental compliances for the smallest businesses or pro-rate those fees. A very small business shouldn’t have to pay the same rate as a medium-small business, especially if the potential output of environmental toxins is much smaller.”

"Reduced taxes encourage job growth, which quickly increases tax base from workers and stimulates spending.”

“Provide a climate for small businesses to borrow at very reasonable rates over extended repayment periods to allow us to remain in business, hire people, and provide goods that make a difference in peoples' lives.”

“In my opinion the banks are not lending money to small minority business because there is a risk factor. The government needs to put a risk policy in place so that the loan will be repaid; however in doing so, there should be a private organization put in place to oversee the process and to make sure the banks do not red line.”

“Given that many small business owners have bad credit, I would say a practical approach would be to give struggling small business owners a one-time credit clean slate so they start fresh again and have credit opportunities. Of course, this should be monitored and strings should come with it, like taking credit counseling and financial management training, and starting a savings account. As a small business owner myself, this makes more sense; besides big corps get brakes, why can't the little guys get 'em too?”

“There are so many things the government is doing to prevent small business growth that this question is just ridiculous. Imposing taxes on everything from shipping goods within borders to income taxes, disavowing lending and credit, and the overall HOSTILITY is awful. What is needed is an outright change in leadership, and even saying leadership is being too kind here.”

“To secure democracy, we need to secure an educated population, but unfortunately, there is so much ignorance in our communities that too many crooks are being elected into political office. Priority: We need to educate people!”

“Small businesses and especially micobusinesses have been hit very hard. Our lines of credit have collapsed, our interest rates on outstanding loans have skyrocketed, and business has been halved or worse. We get no unemployment. Right about now I would advise everyone to not even try to start their own business unless they are independently wealthy and can take the hit.”

“Allow industrial firms to resume lending monies to small businesses as in years past when no personal guarantees were required. 

“Particularly the ‘TBTFs’. There was a report that the smaller, honest, solvent banks will be under pressure to comply with the upcoming new regulations that will make it harder for them to extend small business loans. Meanwhile, the TBTFs are sitting on billions and can cherry pick borrowers. They’re already asking for more ‘cash’ equity to extend credit to small businesses. What a mess!”

“People should realize that the government can’t solve all problems. The people have to learn to solve there problems, for example organizing their communities and holding fundraisers like politicians or charity groups that help build a better life. If you think about on the average we spend at least $30 week on breakfast, lunch etc., so why not use it to help out the community?”

“Redirecting capital available to small business and changing the directives from asset based to cash flow-based lending would encourage small business to be more aggressive about job creation. If you want to create a positive cycle of economic growth, you have to add fuel to the tank that drives the creation of jobs, which has been proven to be small business.”

“Our government should encourage banks and the SBA to allow for more considerations when determining who is eligible for financial assistance in growing a small business and who is not eligible. After all, banks say they help small businesses, but in reality, they are quite selective.”

In general, do you think the federal government is pro small business?

“Most politicians have never worked a real job or ran a business. They only know what the lobbyists say and they represent big business.”

“This administration is about as anti-small business as this country has ever known.”

“This administration wants to take over and control as many aspects of business as it can.”

“Too many in the federal government are only academics without any business experience whatsoever. Their combined ignorance and arrogance with their favoritism towards global corporations who can finance their campaigns is going to bring down America.”

“In my opinion they are willing to help, but they need to be an independent organization to oversee the process and policies so all small business will benefit.”

“All talk no real action."

“Generally speaking, yes. However, the practical approach is far from the truth. I've seen small business owners with five years in business get denied a loan for very insignificant factors, and seen larger business with questionable financial statements get red carpet treatment. In the end, it boils down to who you know. Sadly, most small business owners don’t know too many people in decision-making places and they struggle much more. This is where government should step in to make things fairer for everyone.”

“Need term limits in congress and senate, similar to what we have for the president.”