Economic Recovery: It's About Small Business
According to an article on Reuter's today, small businesses create over half the new jobs in this country but access to credit two years into the recession continues to be scarce. I know this to be true, firsthand. I work directly with business owners to sell and buy businesses. A year ago, things were not as tough as they are today to get SBA business acqusition financing. Now, bankers don't even call you back. So much for "relationship banking" the euphemism that many used during the boom cycle. Hello Congress and President Obama! Stop fussing around with health care. That's NOT the biggest problem right now. The small business community is "sick" because they can't get access to capital. When banks make loans, the economy improves because money circulates. The current credit crisis is a lack of confidence by banks to fund deals. And the the lack of confidence comes from the banking system's over-exuberance to make mortgage loans to peo