(8 pm. – promoted by ek hornbeck)
Jobs: Small Business Loans Are The Mountain Blocking Economic Recovery
Phillip Williams — Apr 17, 2010
Why Small Business Loans Are Important
The economy has lost 8.4 million jobs since the start of the recession. Small businesses employ the majority of the American workforce, although the largest single employer is still the federal government.
When the economy starts to recover small businesses rely on loans to bring up their inventory levels. Large banks and smaller institutions have been reluctant to introduce new loans after the failure of a large number banking institutions. Consequentially, small business owners are looking to alternative methods for generating growth. What is known to be helpful is investing video business cards from Promo, as this can assist in the promotion of a business. Another way small business owners have found to grow and develop is through the use of resources similar to https://www.interact-intranet.com/small-business/ and other sites.
Small banks do not have the resources to start lending again, and the number of new loans have gone down since the start of the recession. Despite a lack of funding, some businesses are continuing to see a surge in growth that is not dependent on bank loans. With the assistance of a Managed Service Provider Melbourne, businesses should be in a great position to ensure IT concerns are the last of their worries as they look to the future.
Banks that received funds from the Troubled Asset Relief program. The larger banks that were branded as too big to fail have also reduced the number of new loans they make to small businesses. They have reinvested the funds in lower-return, lower-risk treasury bonds instead.
And in China, a totally different Picture is emerging:
China Posts a First-Quarter Growth Spurt
NYTimes, THE ASSOCIATED PRESS — April 14, 2010
SHANGHAI (AP) – China’s economic growth surged to 11.9 percent in the first quarter but inflation was lower than expected, easing pressure on Beijing to increase interest rates and slow the economy’s rebound from the global slump, the government said on Thursday.
The data suggested that Chinese leaders were succeeding in their effort to keep stimulus-fueled growth high while preventing inflation from rising sharply.
Chinese leaders face a challenge in checking inflation and curbing reckless spending on unneeded factories and other assets that could leave a mountain of bad debts.
“We believe Beijing now needs to take another small step to exit from its stimulus policies,” said Stephen Green, an economist for Standard Chartered Bank in Shanghai.
Lending by Chinese banks fell 43 percent in the first quarter from a year earlier as the government tightened credit controls while trying to wind down its stimulus.
In the USA, Small Businesses, the Engine of the Economy, CANNOT get the Funds they need to Grow.
In the China, they have the opposite problem, they must REV-DOWN their Engines, by CUTTING Loans, to slow down their explosive Growth!
Mind you, this difference is NOT Academic — Our [lack of] National Policy for encouraging Loans to Small Business — MAKES A REAL DIFFERENCE to creating Real Jobs, here in America.
The Green Jobs of the Future, hinge on getting such Capital Investments — Too Bad, OUR Bankers have other plans for our ‘collective’ National wealth …
For small business, loans still hard to get
Small business owners complain that they’re still having a hard time persuading banks to lend them money.
BY KEVIN G. HALL, JIM WYSS AND BRIDGET CAREY, MiamiHerald — 04/17/2010
Jim Collins, co-owner with his wife Arlene of Quantum Energy Solutions, has been in business in Sacramento, Calif., since 1974. He has a $50,000 line of credit, backed by the U.S. Small Business Administration, through US Bank, owned by US Bancorp. He has a solid credit history and $30,000 in untapped credit.
Yet when Collins approached the bank about borrowing at least $500,000 to expand his 12-employee firm — which retrofits buildings with energy efficient technologies — he was rebuffed, told that his company lacks resources and collateral. US Bancorp declined comment.
Collins, 70, can’t get the money he needs to hire five additional workers and ramp up marketing, even as the Obama administration promotes the “green jobs” of the future. “The credit crunch is still there. It really impedes our ability to grow,” he said. “I’d put five more people to work tomorrow.”
Lending across the U.S. economy contracted 7.4 percent last year, the biggest such drop since 1942, according to the Federal Deposit Insurance Corp. That means $1.5 trillion in lending evaporated last year, the Treasury Department estimates.
As the Intro story, from Economy News, explains: Banks prefer to invest in:
lower-return, lower-risk treasury bonds instead
… INSTEAD of the Innovative Energy Jobs of the Future!
… those Green Jobs, NEEDED NOW, in established Companies — Here in America! (in Sacramento, Calif, to be exact.)
And the REASON WHY, such Loans to Small Business are being Denied, in America?
US Bancorp declined comment.
Isn’t that nice? “No comment”.
Meanwhile, in China, their Economic Growth, is getting all the National “help” they need [to dominate future World Markets, by the way]:
China bubble talk overblown
Soaring Q1 GDP stokes inflation fears
Eric Lam, Financial Post — April 16, 2010
The juggernaut that is China’s economy continued to impress yesterday as it reported 11.9% growth in the first quarter […]
The annualized 11.9% growth in GDP compares with 6.2% in the first quarter of last year when China was in the grips of the global recession.
But a new report from Montreal-based think-tank BCA Research said global handwringing over China is overblown.
Instead, China’s growth comes from structural, secular forces that are not going to disappear.
“The country’s economic success and social progress over the past couple of decades is not a mirage,” the report said. “If any of the previous predictions of doomsayers were correct, the Chinese economy would have already collapsed multiple times.”
These factors [fueling China’s growth] include:
— economic reforms that have allowed productivity to leap,
— a large pool of well-educated workers,
— massive savings in the country’s coffers and
— government policies that are directing resources toward strategic infrastructure development.
Is it any Wonder that the Green Jobs, the Jobs of the Future, are going to China, instead of America?
Our Banks, would rather bet on Wall Street, than bet on OUR Future.
So much for the “Free Market” solving all ills —
“Free” for Whom? … we should start asking …
Certainly NOT “free to” Jim Collins, co-owner with his wife Arlene of Quantum Energy Solutions who ARE TRYING to put Americans back to work, NOW, with those Green Jobs of the Future!
And all they hear … is “NO, you can’t.” … from the Bankers who could make it happen.