Stimulus Aids Small Businesses In Securing Loans

The stimulus bill allowed the U.S. Small Business Administration to raise its loan guarantee to 90 percent or higher, which means if a small business can't pay back its loan, the government will pick up the tab and pay 90 percent to the bank.

[Brandy]

I have a former boss that was telling people he was applying for the loans because "everyone else is getting a bailout, why shouldn't I?" The problem is, the company didn't need a bailout of any sort. We were doing fine.

[RFP]

Unfortunately, what is being reported is not exactly true, while the SBA claims they are making these "loans" the truth is they only guarantee 90% of the loan. A Bank makes the loan and a large majority of the banks in the Tulsa area are not making loans to small businesses. When they rarely make a loan they require loan collateral of at least 110% of the loan amount, 20 to 30% equity by the borrower, and the borrower must sign personal guarantees...i.e. to get a loan the borrower must prove he does not need a loan. Instead of writing a "feel good" story about how the Government is helping people, you should write a story about how the Government and the local banks are strangling small businesses.

[LetsGetReal]

Borrowing does not stimulate a business...or a government for that matter. Borrowing only enslaves the debtor to the bank. Prosperity comes from profit and freedom....both of which our government does not want us to enjoy.