Refocus on Small Business

America’s economy prospers by the invisible hand of competition and free markets. This is exemplified in the financial strength and innovation present in our small businesses. However, as politicians, with an eye on raising campaign funds, cater more to appeasing entrenched corporate interests they have ignored the needs of the greater business community.

Small business creates two-thirds of new jobs and the most significant factor in their success is access to capital. However, commercial loan volume is significantly down from 2000 and the Small Business Administration (SBA) budget for venture capital, micro-lending, and loan guarantee programs has been slashed. The result is that many small business owners have relied on personal home mortgages to expand their businesses, which has resulted in diminished access to capital and over-leveraged households. Now, with the mortgage credit markets tightening, our small business community will be further removed from the capital they need to expand and hire.

It is imperative that we maintain and widen the credit markets to small businesses. We should expand the use of loan guarantees and grants for businesses expanding in strategically vital economic sectors such as alternative energy, nanotechnology, biosciences, agriculture, etc.

Join the conversation at John's blog