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    12 Replies Latest reply on May 9, 2009 6:46 AM by WinnSom

    So where's the bailout for small businesses?

    kimbersands7 Newbie
      I had heard at one point that the feds were specifically injecting money into the banks to stimulate lending for small businesses - has anyone heard what if any plan there is? So many of us small businesses are literally dieing on the vine because our customers aren't buying - so we need working cap to get us through this state of shock this country seems to be in.

      We are in big trouble if no one can help the small businesses.......
        • Re: So where's the bailout for small businesses?
          Lighthouse24 Ranger
          The Senate bill introduced by John Kerry awhile back died right there. A few weeks ago, Senator Charles Schumer made a proposal to "help America's entrepreneurs stressed by a worsening economic climate," but I don't think it or anything similar has been formally introduced as a legislative bill as yet. As I understand it, Schumer's proposal would basically help small firms gain greater access to existing SBA loans by eliminating some of the fees and making more money available for loan guarantees. It would still require the business to apply (and qualify) for one of the SBA-guaranteed loan programs -- which in itself is an obstacle for many of small business owners that make up this community.
          • Re: So where's the bailout for small businesses?
            NoBullFunding Scout

            To make matters worse, SBA lending has all but stopped because of the fact that many SBA lenders sell their loans on the secondary market, and that market has been completely shut down for about 2 months. Just when people need help the most, the SBA is basically helpless because lenders don't have the capital to lend.
            • Re: So where's the bailout for small businesses?
              Navigator
              Troubling times we're spiraling in, hopefully this new administration can pull a coup de grace to dispel all of these issues we're having in the economical world.
              • Re: So where's the bailout for small businesses?
                kimbersands7 Newbie
                I actually obtained an SBA loan last year to start my business and I went through a local community bank that was a SBA preferred lender - meaning that they made the decision at the bank level and did not have to get approval from SBA first etc. Now I wonder if that is being pulled back as well. I was planning to meet with my bank to see if I could roll that loan into a bigger one for wrk cap and some debt consolidation, but I am worried about raising any red flags....call it paranoia!
                • Re: So where's the bailout for small businesses?
                  EAGLESECURITY Newbie

                  As we all know so well, that we are on the hot plate. Big corp. gets the help and the small businesses get the rail end of nothing. If the congress ever wanted to help the economy and create a few new jobs, why don't they have a bail out program like this.. put 700 billon dollars into ssi and medicare and allow the small businesses keep our share of the taxes per employee. I know for a fact that would save me enough money to hire a new employee or two. thus helping this country. It would lower unemployment and do more for this country than AIG's dinner dates.When the country is back on it's feet then raise our taxes to 16.3% to pay it back in a couple of years.
                  • Re: So where's the bailout for small businesses?
                    Howard666 Newbie
                    I started my business on a shoestring, existing book of business and selling everyday, reaching out to new prospects and looking for oportunity with the existing book of business, no SBA loans no credit cards no money from anyone. Just get back to the basics of what inspired us to become business owners, passion and hard work 16 hour days and no life outside of driving the activity you need to make it happen. I have survived for 14 months completly off client A/R. Survive on your own, bail yourself out. We need to stop looking for someone to give us something when the going gets tough. I can sure use some extra cash to help with cashflow their is no money and if you have challenged credit good luck. We are in for a long hard ride strap in hold on and don't give up.
                      • Re: So where's the bailout for small businesses?
                        DomainDiva Ranger
                        Howard, you are a businessman after the Divas' own heart!

                        It is up to each business owner to get creative with the budget, tighten the purse strings and hold on for dear life. We are doing the same thing with the start up, and I have chopped the personal and consulting business budgets as well.

                        Right now I am in a fight to keep my lines of credit.....I have the money to pay them off, but I may loose them if I do. So I pay the minimum plus a little more and check every day on the internet the line amount available making sure that they don't cut me off without notice like they did the HELOC. It's all about keeping tabs on every penny right now. We have to do it ourselves....the government isn't going to be there for us.
                      • Re: So where's the bailout for small businesses?
                        kimbersands7 Newbie
                        I amire that and it would be wonderful in my line of business but with a magazine - you're not even credible until you've been printing a year and advertisers still (and this is industry wide) pay after magazine goes to print - but printer requires payment prior. Printing 30,000 copies runs around $20K a pop and to garner the kind of advertisers needed for the profit point - it is must to print that many copies for distribution.

                        Although I have an SBA loan - I also have personally put into my business $150,000 and haven't slept more than 4 hours in over 2 years - you're never suppose to sleep when your a business owner!!

                        Now - the way to really get through tighter economic times is to tweak your business/revenue model and be flexible. I have already put into motion that plan by only printing 3 out of 6 issues a year - however also having a digital version online every issue and eblasting the link to the opt-in pet owner list I have of 250,000 people. The digital version - get this - runs me around $250 per issue vs. $20K for print (much nicer profit margin).

                        Anyway - thanks for the input - I really enjoy this forum!

                        K
                        • Re: So where's the bailout for small businesses?
                          Howard666 Newbie

                          After two years printing your printer won't extend billing terms after you have paid them up from to print all the previous issues, I am a print broker and part of how I have been able to make the cashflow work is to secure credit terms from my print house. It will make a big impact being able to leverage that revenue 30 - 60 days before payment is due. If you need a printer that is net billing friendly I may be able to send a referral. As far a advertising revenue, I know how tight marketing budgets are so we need to uncover companies that still understand that in a slow economy you don't stop advertising you need to hunt seek out the companies still spending on advertising. I make 20 plus new sales contacts per day minimum and you will find the business and the money. I think many of us have become paralyzed with the continued bad news day in day out about how bad things are, we get caught up on a self fullfilling prophacy that no one wants to spend money on my product or service. Its a vicious cycle only we can overcome in our own minds.

                          Best of luck if you need a net billing supplier to print your publication contact me @ nhherman@gmail.com
                          • Re: So where's the bailout for small businesses?
                            deborahbeatty Newbie
                            I'm wondering the same thing; especially when entrepreneurs like me (I'm a solopreneur who spent the whole year 2007 carefully planning so as not to owe any taxes like any good business person) don't even qualify to apply for the stimulus checks! It broke my heart to find that out and have changed my tax plan for 2008 accordingly.

                            I've been watching the Senate and House records to see if anything looks promising and so far, haven't seen anything hopeful for us. I sure hope this changes. The independent entrepreneurs, the mom and pops and the SOHOs are where big business starts.
                            • Re: So where's the bailout for small businesses?
                              dbrzostowski Newbie
                              Go to www.myspace.com/protest_bailout

                              The TARP Program Application form can be down loaded in the Comment section -by erica ;)

                              You can request funding for your business from the government. Not sure yet if Government is listening to the the people, and wants to help this cuntry in recession. 85% of the people voted against the bailout, but they still spent our tax dollars to bailout wallstreet.

                              90% of this economy is small business, employing US citizens. In this hardship, we have to tell Congress that we need assistance too. Not just the Big Business are in distress.