I'm not sure this ad is accurate. The small business vehicle should be smaller; the MEGA CAPITAL FUEL tanker should be much bigger and just blowing by without so much as a wave.
Small businesses have put hiring, supply buying and real estate expansion on hold as they wait out the vote on a small-business-aid bill that stalled in the Senate earlier this summer.
The lack of available financing becomes a self-fulfilling prophecy then for the banks' perspective. See, they say? Small businesses are riskier.
And banks then want to put the market risks for lending to small businesses, often businesses that support their community, back on to government, ie, we the taxpayer's.
A current bill before Congress would offer:
An increase on government guarantees to as much as 90% on some of the most popular loans. That would mean a little less pressure on banks if a company defaults, because the government would insure a larger percentage of the loan, says Coleman. With current guarantees topping out at 75%, "there is a bit more exposure" for banks...
Of course, the banks do not share 75% of the returns on those loans now. Nor, would they share 90% of the return on those loans.
And business activity declines. And small businesses cannot find the financing to grow. And no jobs are created by small business. And big business continues to cut jobs and hold over $2 trillion in cash. US Firms Build Up Record Cash Reserves.
This is the definition of paralysis: Change is untenable to those with vested interests in maintaining the status quo; the status quo is unsustainable.
And we all reap the consequences. Some more than others.