Today it appears that a new $30 billion loan program will be signed in to law. Yet, as one article points out, it may not do much to unclog the engine of economic growth that is small business.
Why? Because most small businesses aren't expanding in uncertain economic—and regulatory—times.
"Our business customers are mired in uncertainty and are reluctant to invest in their businesses," said William Chase, who is CEO of a Memphis community bank, Triumph Bank, adding that he's got enough money to cover the very limited number of loans that are being requested these days.
What about the loan program? Apparently Triumph isn't buying into it.
"We have taken a strategic decision not to have our primary regulator, the government, also be a partner in our bank," Chase said.
Food for thought.
How about a few investment tax credits instead? While I've been wary of SBA loans (express or otherwise) and don't recommend them to struggling companies due to the strings attached, I often recommend taking advantage of tax credits tied to investment.
Investment tax credits seem a less underhanded way of wealth re-distribution (or an easy way to free the flow of capital, depending on your perspective).
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