Hope For the Small Business Recession
There is a nasty word for small businesses in America. That word is recession. Now it will come to no surprise as a reader of this article that we are experiencing a small business recession unlike any other in the past 50 years.
What is the root cause? Well the easy business credit of the early 2000′s has led us to a place of a credit meltdown that started in 2008.
This should be no surprise to you. What should be a surprise to you is the lack of ingenuity from Washington DC on how to get things moving in a positive direction again. Getting us out of the small business recession.
While I’m not making a political statement right now, the fact is Washington is oblivious as to what needs to happen. What follows is my simple plan to get us out of this small business recession.
First, we need more than just lip service. At the end of September, President Obama signed a new bill to encourage lending to small businesses. A total of $30 billion will be made available to local banks to lend locally.
This is a good start, but so far, we’ve seen little lending.
Why? Because the banks don’t want to lend. They are scared we’ll go deeper into the small business recession.
Second, we need to create huge long term tax incentives to small businesses to hire and invest in a business. Not short term fixes. The more longer term the better. Reducing taxes on small businesses will take the burden off the little guy.
Finally, we need to encourage the local banks to lend again. When the small local bank lends, the small business recession will ease up and get America working again.
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