Maybe somebody can explain this to me since it's totally beyond my comprehension at this point.
On CNN news yesterday there was an interview with a successful restaurant/bar owner in NC who employes 35 people right now. He wants to open another restaurant/bar and start a chain in Fayetteville, NC which could employ 50 people. He applied to his bank for a small business loan of $150,000 (peanuts to start up a new restaurant/bar). The location is ideal, a building is already available, and the parking lot is large.
The bank turned him down (BBT) because he had an item on his credit report that made him too high risk. There wasn't any indication that this credit report was against him personally or if it with regard to the business. There also was no indication if it was because of a dispute or something (which is pretty common for a business if he refused to pay a disputed bill). In any event, he was turned down.
The part that is appalling to me is that although his restaurant made over a million and a half this past year even with the economy crapped out, and he hasn't had to lay off any of his 35 employees, the bank would refuse the loan based on one (or even two) bad mark on his credit.
The reasons this is appalling to me are 1) He is a successful small business man wanting to expand in order to employ even more people in an environment that our government keeps saying is finally stablizing 2) Not one dime of stimulous money has gone to small business owners and yet they are the foundation that our country builds on 3) The Feds NEVER asked for a credit history on any of the banks or insurance companies that got the bailout money to help the economy or they would have all been turned down based on being "high risk" 4) Very little of that bailout money has gone to lending money....but quite a bit went to banks being able to purchase OTHER banks and become even bigger 5) There are probably more reasons I could list but I'm too ticked off right now to think of them all.
Something else and it may be a different topic altogether, but during the depression, right after the crash of '29, FDR deliberately created huge job projects in order to not only get thousands of people back to work (TVA, etc) but the trickle down effect was successful because those projects needed a huge number of companies to supply the materials, etc. in order to complete, which put even MORE people back to work. Why is it so freaking hard for THIS President to understand that health care is NOT the priority, but JOBS are? We have roads, bridges, infrastructure up the gazoo that could use the money to get started and create jobs with a trickle down effect also.