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Posts Tagged ‘AIG’

I have been working through our friendly neighborhood SBA loan program.  It could be the most degrading process ever invented.  Every step of the process is designed to be as painful as possible..quite like doing dentistry in the 18th century.  Not only do you have to provide about 7 inches of paperwork, you must endure idiotic questions from an underwriter that would have trouble running a 2 person convenience store.  Why this is so troubling is that our Federal Gov’t didn’t ask any of these questions of Goldman Sachs, Bank of America, or AIG  that were given billions.  Heck, their financials were prepared by the same person that bills out $700 toilet seats at the Pentagon.  Not only does the financial institution get a75% loan guarantee by the Feds (meaning you an me) they want additional collateral for the 25% that is not covered.  SO…they only want to make risk free loans.  Any business that needs a 100%  backing  should not be in business at all. This leads me to 2 conclusions:

1- 75% of new business growth comes from small business.

2- Small business can only apply for risk free loans.

Pity we don’t realize under these conditions the employment and economic picture will continue to be murky because we appreciate the 25% of the job market that eventually lead to the greatest economic boondoggle in 200 years.

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