Obama Stimulus Small Business Loans – Are you coming our way?
As Americans we have the whole range of emotions after listening TARP came to 350 billion big banks, but no money for small businesses experience filtered through loans. In fact, the Spicket was totally disabled after receiving the ransom money. But to end the first page of our local paper for a moment, as in the trenches? Are banks really deny capital to companies across the nation? And how they will deal with them in this crisis. It will be sad to hear, is the same idea you’ve heard, or worse. Ms. Smith is a classic sign of female entrepreneurial success. Starting as a real estate agent common in the past 24 years has built an amazing corporate buildings, consisting of several sales offices of real estate and currently employs 170 people. His business success was the result of countless hours of work which is described as “addicted to work in series.” As a result, it is considered one of the most productive real estate offices in the state. Over the years, she had a strong relationship with a major bank and took eight loans and credit lines. All were in recovery and were never a day too late. Your credit score is very good and no negative reports. Needless to say, since most companies will be provided to the credit line to their side of the mountain during periods of low cash flow. What happened next could not have evoked in his worst nightmare. One afternoon, January 30, 2009 received a call from your bank. In the past, it is expected that these calls because they are so excited and cooperation. There was something special. His credit was so good that only twice, the bank manager said, speaking with him by his first name, and could the credit line by a simple verbal request to renew. In those days, the conversations were like, “Hello Mrs. Smith. I hope all is well with your business and family. How is your son John is enjoying college life? Sure – we are delighted to extend card credit line again and I will be one of my employees will have the papers and leave it behind as soon as possible. Before speaking with you soon. “Today was different. The CPA was in the office that afternoon pick-up nonprofit and leaf loss account when the call came, it was the manager. Was anyone at the bank had never seen. “Is this Mrs. Smith?” I’m Frank Thompson with ABC Bank. “Began with an accent that could only be described as the consummate arrogance.” Well, hello. How are you today? “Ms. Smith said cheerfully.” Fine. Ms. Smith, I guess they’re busy so let me get to the point. I’ve reviewed your loan effectively and immediately, I am reporting to you are called and are now due. He approached her with words of a sudden and sharp. Although her heart was beating, his first reaction was that he missed the call the wrong person. They waved their CPA immediately got on the line. “Hello. This is Mr. Evans, CPA Mr. Smith. Would you please repeat what said Mrs. Smith? “Mr. Thompson was clearly moved by repeating to herself:” I’m not used to repeat myself, but I’ll tell you once more than $ 200,000. Mrs. Smith credit line is canceled with immediate effect and all amounts due and payable. Am I clear? “Sorry, I do not understand. Is there a problem with the account? To my knowledge, Mrs. Smith has always had to pay their monthly contributions on time and present as we speak.” To say, Mr. Thompson was rude was a euphemism. Now I was even more disturbed the conversation: “Obviously you do not understand. I would say the plain language of the loan agreement, which gives us the opportunity, read at any time with two weeks’ notice. I give you this now reserved. That said, in very simple language, I think we have the basic intelligence to understand what I mean. “” Sorry, but we just try to digest in terms of sending this message. This is very serious. No We can take our checkbooks and full payment within one day. They have not rude to us. “Although still in shock, Ms. Smith tried to talk better. Thompson was eager to quit smoking and reduce the call. “Let me put it more clearly. After what I just said to you, our bank no longer has a business relationship with you. It would be advisable to pay for legal action account, so that legal action is not considered necessary. “” Please understand that it needs some time to think about this… We should… I mean, I need that can be obtained from the administrator of the first “he said.” I’m trying with the account. You’re not talking to anyone but me. “The tone of his voice was unmistakable and ominous. At this point, the conversation was falling steadily. She and her CPA spent the day reviewing the books and talking to his lawyer. Sound like something that can happen not only in America a small business? “Well, think again. These are exact quotes from the interview. The bank is simply better to trample large to small firms, their balance sheets. The Savior, who has thrown large banks in the hope that would happen to small businesses on Main Street did not happen. It is at least understandable, if a large bank does not decide that a new loan to make this economic challenge. But it is a matter entirely of existing loans with the right to cancel customers. ” Is this an isolated incident? Not all. Here is another example. Picou, Robert is president of the California Manufacturing Company in California Ribbon and Carbon Co. known, Inc., is a facility in Los Angeles. Robert the epitome of entrepreneurs with experience, knowledge, to be proud heritage of practical, optimistic, and your company. After talking to get the uncontrollable desire to get into the car and drive to work. get the picture of a dynamic of some industrial goods that are missing in the United States. He should be proud. True story of the films. In 1939 his father began selling the old typewriter ribbons door to door to business owners in the area of Los Angeles. But unlike Willy Loman in “Death of a Salesman, which made it a success. 70 years later, the family business has closely place to thrive. For the grooves in the road, twenty years ago pulled out a business card with a known company and management was a huge credit line to say. Needless to say, he paid for it ever since. But then I have a sudden and unexpected surprise in the mail. The card company credit outside the credit line side and froze access to working capital. He was not particularly intimidated by this story because at least he had a long relationship with its largest bank. All we had to do was call and ask for an extension of your credit line. The bank has $ 150,000,000 in cash TARP probably charge you for the money. Ten years ago they were owed more than $ 1. 4 million, but due to the success of your company, could pay up to $ 88,000 . A perfect candidate to get some of the bailout funds and build a more positive cash flow in his and neighboring economies. No problem, right? Wrong again. Without any explanation, refused to ask its owned bank. Why not get a credible answer. provides batch orders, his company is now not going to finance the difficult situation in a position to all orders. domino effect not only on its suppliers and employees , which give a significant interest in our troubled economy. Clearly, the big banks have no intention to know the use of funds for the rescue plan for small businesses. Now the good news. small community banks are interested in their company through the vehicle as SBA-guaranteed loans. These institutions are the incentives provided by the SBA guarantee, to reduce the risk of loss and building a better portfolio sold on the secondary market. you have to find the right bank. At least give someone who recognizes the fundamental strength of small enterprises, the economy as a whole.
May 13th, 2010 at 4:33 pm
Thanks for the excellent blog entry on working from home. I appreciate it. Thanks!
March 27th, 2011 at 2:39 pm
I am very troubled about the next election. When I think about everything that is happening in Iraq, Afghanistan, and the Middle East (not to mention the U.S. economy) we really should demand a superior leader. I’m far from convinced that President Obama or any of the Republican challengers so far have the experience or skills it takes to get the job done the way it needs to be done. Being president of the U.S. is an incredibly difficult job. Is there any man or woman out there with the experience, skill, and moral courage to do the job?