Small Biz State of the Union
Starting in January, the new administration can expect to field many SOS calls from entrepreneurs. How is your small business doing – and what should the new administration do to help?
From Stephen Kay Madisonville Tx Well don;t know about the rest of you I,ve try almost every bank and SBA for the ark loan and so far all i get is the run round.Had one Banker tell me that the way they doing the loans now not to sure i could get one.the way it looking now I;ll have to close and go back to work for someone else.The bad part is I;m so small they say I;m a realy risk<but i,ve been in Businnessfor alittle over Two yrs was doing real well till all this came to a stop now I do lucky if i make eought to just pay my bills.If thing are going to turn around wish they hurry up
From JoyMarie Goodman-Morristown TN SBA is a joke, i applied seven months ago for $25000 and was told i could get $5000 which i stilol have not gotten because Zarnacow (the head of SBA) put an arbituary hold on each financial industry of no more than 100 loans given a month. The one i am dealing with has 700 to get out. One place, a big company given a grant to loan to small businesses told me to call a bank that he did not have to give out the grant money, no one was checking up on it and he was not giving it out. We small businesses need to unite, form a independent union of our own and loan each other money, Contact me if you are interested at joymariegoodman@netscape.com
From alex vitti it have been a bit easy with the loans-credits,but not its more and more difficult to get one
try http://www.capitallynk.com I guess, they can help
From j. Orlando, Fl I own a medium small business auto repair shop…nowhere to turn for a loan Orlando Florida is in a terrible recession. My customers cannot afford to fix their cars..although there is no shortage of work they have no cash or credit. I know a 35K would get me through this…I am about ready to throw in the towel. No help for small business and the SBA is a joke.
From CMC North Carolina If the banks wont… why can't SBA work directly with us? Most community colleges have a SBA office… we could go to someone there? It's time to let banks know they dont run the country anymore.
From joel, yakima washington i've been open for 2 years now and have 6 employees, and i don't know if it was the timeing that i opend this business, just when times are getting bad, but i've only been making enough to pay my employees and keep all the bills up to date. Now that the min-wage whent up to 8.55 its hard to do even that. I've wanted to expand or put some money in to see if a little of it would be left over for my personal bills, but have not been able to afford any additional projects. I've gone to the banks but because the firt year i lost so much money and this last year i made just a bit i'm not able to get any loans. the only thing is to cut employee hours but things get hard when i'm short handed. what can i do?
From Arleen, Pinedale, Wyoming The banks are still not willing to help small business. I live in Wyoming and most of the banks here are not interested in learning how to do SBA loans. We have little or no resources here and the SBA is semi-willing to help. Our company is ready to go to the next stage and build a new facility and hire new employees but we can't get help.
From Michael Hathaway. 202 e 3rd st. Beaumont Ca. It's amazing to me that the very organizations that got us to where we are today are the very same mogals that we are looking to bail we the people out. I have been self employed as a contractor for over 25 years. Have been successful in taking a company from 50K to over 4 mil. per year. Based on government budgets, propostions and bond measures for so called infrastructure and roads. They take oer 25 cents per gallon that is suppose to be used specifically for roads and we're all driving around on crap. We make major investment, put our personal holdings and families at stake so they can do what? Con us into believing that we are living the American dream but in reality it is worse than communism. At least the Communist Government tells you up front that what is yours is thiers. At the end of the day you are taxed into having to take on more debt and if you try to save money for times like now, that is profit and that must be taxed at hire rates. So you re-invest back into your companies hoping that there will be a better pay off and instead you find yourself loosing everything you worked so hard for because the market fell & they tax you to death. Taxation is the #1 trigger that puts business owners into having to borrow to keep a float. Edd, Eft, Income, Buisness property, DMV, attorney fees to keep them off your freakin back, roads that are falling apart and adding extra wear and tear on your vehicles because they take the monies that were origionaly suppose to be used to maintain roads and bridges and use it to fund thier big beautiful government offices why you have to do busness out of your home or a job trailer, sales taxes,
property tax and last but not least, death tax. After you get to the end of your life they want to rob your children of thier inharetence. Final words of advice for small bus peeps. Don't rely on this government to bail the majority of you out, do what you have always done, rely on yourself and lesson your tax exposure as much as possible. Keep cutting back, budget-budget and budget and make this determination of what you really believe every day. Is your fear of getting up off the mat stronger than the absolute determination its going to take to take this big giant out and be successful at what you do. You like me are more than likely a fighter and want to knock the hell out of this 5oo Lb. gorrella so count your nickles, pay as you play and avoid credit at all cost and cash your register out every day. Believe in you and God and rely on no man because no man loves you more than you do or God. Most people just want to know what they can get out of you. Hang tough and know that there is light at the end of the tunnel for those who perservier and do thier home work!
Be Blessed.
From L. Logan, Dallas, TX I agree with Sachin from Miami Florida….we need to have a voice for the small businesses. There's a group called Small Business Coalition (check their website) however, in looking at their site….they are not voicing our concerns. We the people of these small business need to come together and SPEAK OUT!!! Everyone say’s that the economy growth is due to the small businesses so why are we so high on saving the big companies? All the bailout money that has gone into their accts…..and what do they have to show for? Nothing….they are asking for even more money!!!! If that money had been spent on the small business…….the economy would be blooming by now! We can make things happen! We will create jobs….we will rise above and continue with the American Dream. We are united by one common goal…and that is to keep our dreams alive…and what better way than to come together and fight for what's ours. Our voices need to be heard just like the big banking/financial/auto instutions were heard.
Everyone should Contact: Rep. Nydia Velázquez, D-N.Y., the chairwoman of the House Committee on Small Business who said: "America's small businesses have led our nation out of previous economic downturns and, given the right tools, they can do so again."
Also, Senate Small Business and Entrepreneurship Committee Chair Mary Landrieu, D-La., Her committee's priorities include increasing funding to the SBA, strengthening the SBA's disaster loan program, and pushing Obama to elevate the SBA's administrator to a Cabinet-level position, which was reported by CNN Money.
Perhaps they will be our voices on Capitol and the Whitehouse.
From sachin miami florida Small businesses such as ours need to form a coalition so our voices can be heard in Washington. We are after all, as a group, larger than Aig or GM and as a group too large too fail. We need to develop a group with a singular voice to approach President Obama not to neglect us. Any thoughts on how we can form this group of collective voices will be much appreciated.
From Libby Logan, Dallas, TX About 2 yrs ago we bought a small bistro cafe in the Dallas area. This was an existing cafe. We fell in love with the concept. Both my husband and I are professionals. We've both worked in fortune 100 companies through our careers. When we bought the restaurant we thought, like many people, that this could be the beginning of a big and profitable venture. However as time went on we realize the people we bought the cafe from had painted a pretty picture for us. They did not disclose the true operating numbers of the cafe. Needless to say we found ourselves hurting for money. We applied to SBA…we were given a loan for 50K. However, that money has been used up. We didn't realize the little cafe would cost so much to keep it going. Now we find ourselves like everyone else, working just to make ends meet and pulling money from our credit cards. We don’t want to loose the restaurant nor do we want the employees out of a job. I am focusing on growing the catering business. We are a minority and HUB certified business. Trying to survive in these horrible economic times has been very stressful. Especially since the banks don't want to lend money. How can we stay in business and weather the storm if the banks are not lending? The banks are requiring so much information and they have tight guidelines for lending money but what guidelines and information is the government requiring from the banks. My husband and I have worked our butts off throughout our careers. We are honest hard working people like many other Americans’ here. We don't deserve to pay for the mistakes of those greedy Wallstreet people. In our professional careers both my husband and I were compensated with an annual bonus based on the overall performance of the company…..so can you tell me why these Wallstreet bastards are getting bonuses when they brought the financial/banking system down? I've heard it's to retain talent…..that same talent got us in this mess so if you ask me they should be put in jail or at least they should give every penny back to all those individual they took money from. Including their multi-million dollar homes they have all over the world. We, the people have trusted them for many years…..and now people are suffering…..it's a shame that our government let's them get away with murder!!!! We are getting so desperate for working capital to keep the business going. We are trying to be optimistic that the right programs will come along ASAP to help us all small business owners get back on our feet.
From Roy Bartlette,Shelbyville, Tn. I am retired and these so called CEO's are stealing our companies and our pensions. I think they should be punished for their tactics. I also believe that every person should be dismissed if he or she take a bribe. And especially avoid their taxes. The average person would be put in jail.
This is what they should to all those theiving bankers and stock brokers. This would include Judges.
From Jim Franceus, CFP I really don't see a lot of direct help for small business in this "stimulus" package. There will be some indirect benefit when people have more money to spend, but most of that comes from handouts. Businesses in Oregon are going to penalized from whatever benefit they would have had from the federal stimulus plan, because of a bill in the process of passing the democrat controlled legislature and governor as follows:
• Disconnect Oregon from the federal tax code and deny Oregonians and Oregon companies the benefits of a federal stimulus package if it is passed by the U.S. Congress;
• Eliminate incentives included in the federal stimulus package to encourage businesses to purchase machinery, equipment, software and other items for sustaining manufacturing and production operations;
• Negatively impact Oregon’s business community and their ability to sustain or create jobs;
• Increase taxes on Oregonians receiving unemployment benefits; and
• Result in nearly $100 million in increased taxes on Oregonians and Oregon businesses.
Our state wants money for its coffers, but will take back whatever benefit the feds give business as far as state income taxes are concerned. What's wrong with this picture?
From John Hickman (Gameplexx), Richmond Va It perplexes me that the people in Washington has overlooked things for years on Wall Street and is now overlooking the millions of small businesses in America. More capital infusion into the banks are not fixing the problem, its compounding the problem. My story is no different than the countless other businees owners in this forum. The SBA lender who has my loan refuses to subordinate/release my collateral where I can't tap into the equity into my home. Congress needs to step in and say to these banks that they can't cause hardship to those business owners who are not insolvent. This mess we have gotten ourselves into is ruining families, just look at family suicides that have occurred in the last couple of weeks, businesses, just look at this forum and the millions of small businesses that need help right now. Yet all you hear from our politicians is just wait things are going to clear up. Well things are not getting better. How long do we have to wait, look at what happened to the Katrina victims when they had to wait. If something doesn't start to happen soon, we fill find ourself back in the depression of 1929. Bank bailouts are definitely not the answer because they are only looking out for their best interest. God nor our own Government can help us they rather spend 10 billion dollars in IRAQ rather than help the folks in their own back yard.
From Linda Williams, Dyer, NV Small Businesses have to pay county, state and federal taxes, health insurances, liability insurance, employment premiums, work compt premiums at the same rate and limits that larger corporations do. Whether we employ one or many, there is no difference. As small businesses, the guidelines need to be geared for small businesses and not lump us all together, big and small, making it almost impossible to pay all the fees required to own a small business. We do not compete in the same marketing areas yet we are expected to uphold the same regulations of a large coopany. In the 30 years of owning my business, the requirements have become more in line with larger corporations but with out the percs and benefits. When will the government fleecing of small businesses stop? When can we get Capitol Hill "tarps"-"bailouts" and "stimulus packages" to put the average citizen back to work in one of many thousand truly "small American businesses" that kept this nation #1. When will the administration see that we are not like the corporate scammers who have preyed on the old and weak but we are the backbone of the work force who by knowing and living next to their neighbor wouldn't think of scamming them but would open their homes to feed and shelter them. We are the ones who need the bailout. And Soon. Thank you.
From Tom,Farmington Hills,Mi economic conditions over the last 3-4 years have caused many construction contractors to lose the ability to secure construction bonding therefore new federally sponsored construction projects intending to put $$$$ into economy and create much needed jobs will be severely hampered unless the bonding statute(Miller Act) is relaxed or other measures are taken to be able to secure bonding at reasonable prices.
From Brian Javeline, Pompano Beach, FL The government should CONTINUE to let the entreprenurial firms introduce ideas AND RESPOND in some fashion. Currently Obama is open on getting ideas but it is hard to know who is listening when there are no replies.
Example: Many contractors are unaware of the opportunities that are available through agencies such as HUD, GSA and the Military that are engaged in the hiring of contractors for the upkeep of facilities. The government is set to grant billions on community development projects. Nearly everyone calling for more government spending is also calling for better accountability of where this money goes. These goals are impossible to achieve while the agencies deploying work are vastly inefficient. Further, the vast majority of recipients of government agency contracts operate their business with limited use of technology. MyOnlineToolbox.com can assist these agencies by providing one simple solution for connecting to thousands or tens of thousands of contractors. I have not be able to reach one official who will listen, but the tons of paper via the fax machine keep flowing. How can we pitch ideas to executives who are not open minded like the business sector is?
From Allen, Wiggins Ms Busch spent money we didnt have and now Obama is going to spend even more money that we dont have. And you wonder Why Americans do it with their busineses. Dont learn from that example. Just learn from the mistake that it is. Dont look for some one else to bail you out. Bail yourself out and dont depend on any one else to take care of you. Earn what you get and get what you earn. That's what I was always taught and it made sence to me.
From Allen, Wiggins Ms The unions have caused moste of the problems today. They have to pay such high waiges and the big buisinesses cant compeat with the non union shops any more. Thats why all our big companies are moving to china and other areas. So they can compete. But then it takes our jobs.
The government shoud stop spending so darn much money,Give tax breaks to every one that actualy pays taxes. Not to the wealfare recipients that get all they pay inn every year and then some. Give realy good insentives for big and small businesses to want to operate hear and get rid of the union so they can all compete.
Thats some of my opinion on fixing the econemy and puting money in everyones pocket.
From G.Horrocks, Burlington, NJ We have a small business that has built a 35 lot subdivision of homes in a Smart Growth area of New Jersey and in order to sell homes we need to drop our prices but there is no room to drop the prices due to the bank payoff. What happened to the 350 billion that went to the banks? Why can't our bank help us? Bankruptcy is the only answer…so we are told.
From J.Norton [ret]SBA Officer, Missoula, MT. The "TALF" program will certainly help the Lenders by opening up the secondary markets for New Loans. However, what about Small Business Owners that already have SBA loans [secured by their homes] in a rapidly failing economy…..?
They are unable to make the Bank Loan payments and face Foreclosure on the Business and the Homes that secure the SBA Collateral.
Applications for SBA Deferments are running into resistance from the banks as it impacts "their" cash flow.
What existing Small Business Owners [ and the Banks] need is a Nationally Declared Small Business Disaster, converting these existing loans into the Disaster Program and open the door for Economic Injury Loans [EIDL] for lost working capital.
This move would free up the banks portfolio, assist Small Business with longer Terms, and much needed Working Capital during this recovery period.
From Roger Sherin, Indian Trail, NC We owne a small real-estate firm that has been trying to get a development with nineteen lots started for three years. During this period of time Union County North Carolina has depleted all of their available sewer capacity, and has no immediate plans in effect to acquire additionaal sewer availability. I have invested all my available funds in engineering for the subdivision layout, and surveying. I now need a loan for operating capital. I have tried to get a loan from my local bank and use the property which is free and clear of mortgage for colateral, and has been appraised for more than 800 thousand dollars. They offered to loan 40 thousand dollars, which leaves me out in the cold. I stand to loose all I have if I can not work something out for a loan with someone. This subdivision was to be built out and sold out in 2006, and was to be my retirement money, but I am still working and must continue to work to live. I am sixty eight years old. Need a bailout desperately.
From Tera B, Georgia We have/had an audio/visual design, install, integrate business that in a normal economy would be fine, but has proposed projects that were "pushed back" due to companies & churches not spending in the last quarter of 2008. Now that we have asked the banks for a line of credit and have been denied, we cannot exist long enough to get to the projects upcoming. We are closing and will probably lose our home next. Where did the American Dream go…it was stolen by the banks who got our tax money and kept it.
From E. C. Fillmore, Birmingham, AL We are in the same situation as the Mortons except worse. We were in the process of opening a franchised Baskin Robbins in AL. We have gone through franchise fees, training in Burbank, CA and to top it off, we signed a lease based on a verbal financing approval. Now, they have pulled back on their commitment and we can't secure a loan anywhere. The banks are turning us down before they even run a credit check. Their reasoning is lack of collateral but it was my understanding that the intent of the SBA was to help people like us. We have invested over 30 thousand and are locked in a commercial lease. This will be the financial ruin of my family. Someone needs to do something-quick.
From G. zeamer , holliston, MA I have a SBA loan.
I would perfer to layoff my 14 people, and close up shop, then to ever go that way again.
they are worse the using a credit card!
and every year the carry costs are huge!
From JOHNNIE D. TAYLOR PLEASE DO NOT EXCLUDE PUERTO RICO FROM BENEFITS AND DON'T USE RETIRED GOV'T WORKERS AS AN EXAMPLE LIKE WAS DONE IN THE PAST! I AM A RETIRED USC AGENT WHO STAYED IN PR AND STARTED SMALL INN. I PUT EVERYTHING BACK INTO IT AND LIVED SIMPLY FOR 10 YEARS. NOW BANKRUPT DUE TO NO ACCESS TO EQUITY.
From R Reeves Here in Michigan the economy is terrible. Why hasn't the federal government started an interest free loan programs to assist small businesses to expand or at least keep going to provide jobs to the local area.
This has been the federal governments position in the past for many disasters, the state of the economy here is a disaster. We need help now.
I have had a SBA loan for nine years now I have loss my savings and my house is in Jeopardy also.
The banks making these SBA loans have had help for the FEDERAL government, but the small business owner has not. These small businesses need to be helped as well. How about some economic stimulus for us now?
From K Richards, Olympia, Wa This educational video regarding the banking crisis helped me immensely. It is a must watch:
http://www.mortgagesuccesssource.com/go/markmarket/
I am a partner in a 3 year old company that has a trademarked tag line "Building Energy Solutions" We can build net zero [over a 12 month period you sell enough back to the power company to create a net zero balance on your bill]
In addition we offer design construction consulting in the beginning process. It does not raise the cost of construction to reduce the energy load of a building by 40% with proper planning and construction techniques.
We also are distrutors and installers for cutting edge green energy control products for building.
We are educated in regard to building science as it is applied to construction.
We build certified homes when we build. These homes come with a RESNET score, a HERS rating [minimum rating of 60 with wood frame construction], thermal imaging prior to sheetrock for perfect insulation that is a verification for the client, a blower test is performed also.
We believe it is time for clients to make builders accountable for the product. Show them the third party verifications for what you promised the client.
We are doing well today. However I am very concerned. I have a lot of cash tied up in land that is no longer marketable. Banks hate small businesses and especially builders. It doesn't matter what the project is. We do have local credit unions that seem to be open to loans. I will find out when I build my own home and my next rental home.
I find L&I to be horribly repressive at $3 bucks an hour for each employee in the field. We walk the Green talk. As small as we are our employees have excellant health insurance with dental and vision. I wish the federal government would mandate that L&I be privatised like it is in Oregon. In Washington that is not the case. This alone is very hard on small businesses. I wish there was more tax incentives for non-union Mom and Pop businesses that step up to the plate for employees.
I am hoping that the housing stimulis [see http://www.huffingtonpost.com/a-siegel/massively-efficient-path_b_151545.html ] passes. This would be a tremendous boost for us. We are ready to build 70% above code. That is not easy to accomplish. Few builders can do this. This bill will reward builders like us and force other builders to come on board. That is good for everyone.
This bill would play out like this:
From Transition Team Weighing Blockbuster Housing and Stimulus Proposal
by David Sassoon – Dec 12th, 2008
If you are a homeowner, you can bring your mortgage rate down 2 or 3 or 4 points – with Uncle Sam picking up the difference – if you improve the energy efficiency of your home. It's an offer you can't refuse, because it means you can save hundreds of dollars on a typical monthly mortgage, plus hundreds more in reduced energy bills – in perpetuity.
Here's a hypothetical example that highlights the huge incentives the plan could unleash. Say you're a homeowner with a $272,000 mortgage at 5.55%, paying about $1,550 a month. You decide you want your mortgage rate to drop to 3%. In order to qualify for the reduction, you have to improve the energy efficiency of your home 75% below code, and it's going to cost you a pretty penny: say, about $40,000.
Existing tax credits would take care of about $10,000 of that cost. The rest would get tacked on to your existing mortgage, bringing it up to $302,000. But, at 3%, you'd be paying only about $1,280 – saving almost $300 a month on the mortgage alone, plus another $150 in reduced energy costs. The value of your home rises, you have more disposable income, you've given work to someone to do the upgrades for you, and you've reduced your carbon footprint.
The economy is really changing forsure. I will know in the next 6 months if we can survive in this market.
For all of us I hope that any builder that brings this type of product to the market can. The carbon footprint and energy load of current housing practices is naseous and needs to be corrected.
From David Doty, Columbia, SC TALPF is a good step, but it needs to be much more aggressive. At least $150B needs to be injected quickly into small businesses. Lifting the interest caps on SBA loans is definitely a good idea, as many small businesses are currently keeping their businesses alive by paying much higher interest rates to credit card companies. Another helpful step would be to allow lower quality or unconventional assets (such as fully depreciated equipment, or pending patents) to be given tangible value. Having inadequate conventional assets didn’t seem to be a problem when it came to bailing out Wall Street. It’s time to bail out Main Street. Imagine how much better off the country would be now if a major fraction of the money that has gone to bail out Wall Street instead went into loans to deserving small businesses.
From Arthur Vann, Aiken, SC The thing is, most small business loans are via credit cards, not banks, unless property is leveraged in some way, which for many is not an option in today's market.
What is not understood by many 'experts' is that you could reduce interest rates to zero and nothing would change.
Credit lines need to be made available via Credit Cards, in many instances restored (backed by the Govt.?) to people with FICO scores over 650.
Only then will you see things improve.
From Mike The lousy stinking Bush bailout banks, his buddies on wall street, big three auto company all the while left small business and average workers to rot. Those bastards up in congress and his WH admin are the worst people ever.
From Gil Evans Toledo, Ohio This has made the most sense so far. I decided to close one of my businesses after Christmas. We were closed Christmas evening and Christmas Day and will not reopen. I wont sleep tonight. We had to make a decision of loosing one place and 30 employees or lose all three and our home. I found nothing on here to make me feel better about putting people out of work, but I now realize the effects if I don't stick to my decision.
From JRC COLUMBIA,TN, AIG/CUNA MUTUAL DOESN'T PAY CLAIMS BUT GETS BAILOUT MONEY ! SURE WAY TO RUIN AMERICANS !!!!!!!!!!!
From Dawad Norville Life is funny, when i bought the cab company i worked for. If i did not buy the company with all my savings, i would have been without a job. I had just started believing in the "American Dream." I built back up a nice customer base working 21 hours/7 day weeks with days off in years and then my insurance rates went to the same amount a cab pays in NY. My contacts started paying late and it was recipe for disaster. I went a few months not paying myself to keep the cars running, the insurances paid, the advertisers off my back, but now the customers are running out of money and are only able to afford one way from the grocery store. I went to bank after years and asked for a small loan to buy a couple more cars but was turned down cause i had no assets. how am i supposed to get assests? i turn down at least to trips a day for a couple years now, i really could use the extra cars, but i am already paying on two. i feel like i am badly trapped. anyone got any suggestions
From Gladys, Tuscaloosa, AL Cashflow..it is all about keeping money MOVING. Most small businesses need a little extra here and there mostly due to TIMING. Gotta' pay this now with money I'll collect in 10 days. Hit the savings account or credit card, if you still have either. Now you have a new payment in the rotation. I've been on a roller coaster since the end of 2007. That's when my retail business started showing signs that something really bad was happening with the economy. Been a small business owner for many years. Long enough to know I can't fit into that "girdle" called the SBA. The SBA needs someone who's "been there" to run the show. A small business owner's most valuable asset is his TIME. Let's hope for a revamped SBA that will stop wasting such a valuable American asset.
From Dan, Lynchburg VA SCORE volunteers help small business. We have developed a self study presentation "Your Business – Surviving the Recession" that can be downloaded at http://www.lynchburgscore.org.
It includes practical items you can put in practice for your business.
From Linda, Denver, Colorado I own a youth hostel For anyone who doesn't know what that is, check out "hosteling" on the internet. It is an economic alternative to hotels and motels for traveling people (mostly college age). Our guest count is way down. It began dropping when gas was at an all time high. It hasn't really picked back up because most people traveling internationally make reservations way in advance and travel got too expensive. Now I am cutting hours on my employees, am behind on my building lease payments and expect to have to lay off just about everybody in the next couple of weeks. I don't depend on loans or inventory. We have cut our prices to "winter rates", spent some money on redecoratiing and repairs…praying for just a little business. My business plan is for profitability at only 30% occupancy. A short term (1 year) gap loan would be helpful, but I don't qualify because the business has never had any credit. Alternatives for me are returning the building to single apartments rented out on a short term basis and hoping the hostel will pick up in the spring. No I don't want a damn government handout. No I don't want taxes raised. I do depend on credit card charges our guests use for their bills and I think they are getting their credit limits cut, so they can't travel. What happened to the "credit crisis bailout"? Obviously our congress is pretty stupid, handing out money with no controls or stipulations as to its use…bought another bank with your money, did you? And now, we are putting more of the power in the hands of those same ignorant people. I'll bet not one member of Congress ever owned a small business.
From Dave – Milwaukee, WI I Have A Auto Repair Shop I Started In March Of 2006 In Milwaukee, WI .I've Been Doing Ok, Seemed To Slow Down A little In September, And In October It Was Very Slow,I Think It Was The Intial Shock & News Media That Kept Customers From Coming In For Repairs.Then Sales In November Took Off For A Record Month.I'm Thinking That People Can Only Put Repairs Off For So Long And Then They Need To Do It Or Use Public Transportation, Also The Fact That It Is Harder To Get A Loan For A New Or Used Car.A Persons Only Option In This Economy Is To Do The Repairs No Matter What The Cost.
From Brian Javeline We would like to help the administration. http://www.MyOnlineToolbox.com is specifically designed for the millions of Joe The Plumber, Mike The Electrician, Jose The Roofer, and Sally The Bookkeeper for her husband's repair and remodeling business. The entire residentual marketplace is frozen and poeoples homes will either be fixed or enhanced while new construction is brought to its knees. The problem is that the majority of the industry is managed by notes on pen-paper-napkin-drywall. Just like Obama used the Internet, MyOnlineToolbox is a very efficient tool for contractors to better connect to other contractors, homeowners and suppliers. We are an American firm for an American labor force. HUD doles out hundreds of millions in small projects and spends a ton with innefficient communication methods. We are willing to help out for a fraction of the cost and also help the American worker. DELL JUST AWARDED US A TOP 10 INNOVATOR FOR SMALL MOBILE CONTRACTING BUSINESSES. My SOS call is simple "Who at HUD is progressive like Obama is when it comes to using the Internet?". Just call us since we have been trying and it is impossible to break the corporate maze.
From Mike, Houston, Tx Listen, just send all of your bills to the White House. Obama will take care of them 
From kris, concord,ca It is unreasonable for most businesses to run on cash only as one of the posters has stated. We need credit from suppliers and loans to get inventory. I have a hard time believing a business can run on cash only unless one was independently wealthy going in, or ripping off customers with such a high markup, or of course is a service oriented business where no inventory is involved. Bottom line-all of a sudden businesses who have been able to survive are being threatened by credit line cut-offs, more pressure from suppliers, going out of business, etc. Don't forget if you fall behind one month or LESS your credit will be affected which will screw you and all of a sudden you are being called and threatened for money by the same people stroking you for years. How dare anyone state in this posting business owners are looking for handouts and maybe we should be out of business. We didnt create the big mess which is now causing ripple effect on main st. We are just trying to survive the fallout. I dont want money-I want everyone to work together and be a bit more lenient and understanding under the current conditions. If an owner cant pay in full one month…work with them..don't turn into the devil! I have seen businesses all around me close because they had credit lines cut before the holiday. These businesses had been around over 20 years. They didn't just become uneducated,wasteful business owners all of a sudden in the last year! It has always been hard to get a small business loan, now we have no hope. And if no one is buying your product you cant pay the bills bottom line. Dont fault owners for wanting to get a loan to get through the hard times. It is good for the communtiy for small business to stay around.
From R.S., Mobile, Al I have a 27 yr.old business that has struggled over the last yr.My bank merged with another bank in July and sent Demand Letters in August of 2007. They gave me the name of a Factoring Company to contact for financing. I filled out the necessary paper work, the company wanted to do business with us. The bank said No, that this wouldn't do what they wanted it to do. Five Banks and 9 Financing Companies later, my business is hangthread. I can't get a loan because the Bank won't relinquish any hold on our collateral. These large banks have businesses by the throat and they don't care who they step on. I am in favor of the Government stepping in and helping the Small Businesses. I could use it today! Where do we go for help? I had a profitable business, now that I can't buy inventory, I can't supply orders, this has gone on for a year and my business has suffered greatly. I've even contacted my State's government officials for advice. I wish someone could point me in the right direction on this.
From Jon, Sedona AZ My wife and I picked the worst of all times to purchase a thriving business. Our retirements are now tied up in a business that is seeing a downturn starting the half month before we took the keys.
With a 14 year profitable business now in the red, limited working capital and no bank financing or even credit lines available, we're counting the weeks until the money runs out.
I have little faith that Obama's administration will help.
Much of the blame for the current crisis should be placed on the Democratic foxes watching the hen house. I expect political favoritism as usual, and our family is bracing to lose all of our investments and home, which of course we've been unable to sell.
While we have every confidence in ourselves to pull out of this problem, my confidence in the Obama government is ZERO.
From Ron, Augusta, GA The reason banks aren't lending is they know that the worst is yet to come. We're only a few months into this and still have a long way to go before it is over. Any credit dependent business is not going to make it. Banks know this. Sales are way down and seasonal xmas sales will be the worst in 50 years. Even highly capitalized big brick and mortar stores are going to go under before this is over. Why would a bank loan money to a small outfit that will have an even harder time making a profit. The economy is 70% driven by consumer spending and consumers are not spending because they lost their credit. Nobody had any savings. Our savings rate is effectively zero. You guys are trying to rearrange deck chairs on the Titanic thinking a loan will see you through. There are not enough customers with money or credit left to buy your stuff so that you can make money and pay back a loan. Hmmm.
From Ben, Martinsville VA The water in Virginia is fine Shannon.
I am in complete agreement with your assessment. I am in complete agreement that 'For America to survive as an economic engine, it has to stop making debt it’s number one export, and start making really high quality products. It needs to be ingenious, creative, flexible, and a bit daring.'
I made an earlier post for which I was pounced upon ( I quote ):
My key to running the business is to keep debt at zero, manage inventory and keep payroll and other overhead at a minimum. Outsource everything when possible. I always plan for the worst case scenario and I never expand into another area unless I have thoroughly researched it. Research, research, research before every move and plan for the absolute worst case scenario before expanding. Smart business owners are not by nature optimists – they understand that you have to be prepared to weather the storm.
These are sounds business principals yet no one asked me how I managed to do these things. In fact, one poster, who did not have a clue who I am or what my business model was decided I must have it 'easier' (whatever that means). When I suggested that as merchants it was your job to find products (this is called creativity) that your customers wanted to buy instead of the same old stuff a number of posters were offended by that.
My issue lies with the fact that the majority of the posts in this forum are not about eliminating debt. They are not about being creative. They seem to be along the lines of, 'oh things were great, now they are not, I need some money to see me through'. One poster even suggested that small businesses, regardless of size, get a $1000-$5000 grant that did not need to be repaid. Can you say welfare?
Yes, it does anger me that my fellow so-called business people are asking the government to take tax money (stolen money) from productive businesses/citizens and give it to businesses that are failing. We got none of their profits when times were good, why should we have to take the hit when things go bad? It does anger me that the philosophy of the American Dream of working hard, putting up your own risk and capital, beating the odds and succeeding then enjoying the benefits of a job well done seems to be dead. The new philosophy seems to be, 'hey, I have a business here and it is not working out. How about some help"'.
America is becoming more & more socialist by the day. Can't make your house payment? Well, we'll just take some from this frugal & responsible chap over here. Business is failing? Well, we'll just take some from this well run business over here.
Angry? Yes, someone should be angry at the death of the American Dream. The right to self-determination. The right to stand up and risk to fail or succeed and then to take responsibility for the results of those efforts – rather they be utter failure or against-all-odds-success!
From Shannon Smith, Niceville, Fla. What's in the water in Virginia? There seems to be some anger management needed in this column. By far most of the postings have been sincere, and from business owners who are doing everything they can to adjust to the new economic problems. Like having their credit lines cut or watching their clients loose their jobs. For America to survive as an economic engine, it has to stop making debt it's number one export, and start making really high quality products. It needs to be ingenious, creative, flexible, and a bit daring. Look at the insurance companies like Hartford, that were bombing and just decided to become banks so they can also receive some of the 700 billion bailout. Now that's an ingenious adaption. Use your imaginations – necessity is the mother of invention – and you guys can do it. Don't let the block heads in these columns get your goat – they have no imagination and without that – they are not true American business people – they are nothing more than peddlers.
From Ben, Martinsville VA What's your point? It's the Banks fault? They stuck a gun to your head and made you sign for a loan?
For crying out loud – the banks made the loans, its' their fault. The banks aren't making the loans, its' their fault.
From donna bremerton wa I think that America needs to realize that there is more to business than the brick and mortor style. Most people cannot afford to build a business that way and when they do, struggle to stay successful.
Great, profitiable on-line business do exsist. Research and hard work are needed to succeed.
Time to step up and realize that it can no longer be business as usual.
From Vinny Ferraiolo, Chester, VA Hello. I feel pretty bad posting here, but here is my story. We are a specialty pet store, offthearkexoticpets.com, and have actually benefited from this downturn. I praise God for our progress. It seems the economic situations fluctuating around the country has put a tremendous amount of pressure on our competitors and none on us.
My wife and I have fulltime jobs in education so our business, brick and mortar shop, may break even and be succesful in our eyes. All I know is we are smart in what we do and what we do not do.
I have many friends in the restuarant and construction businesses and I feel for them. Hours, pay and pride have been reduced. All I can tell everyone is hang on and just like everything in life, what goes up comes down and what sucks becomes sweet. We are all in this together and we will make it through no matter whose in charge.
From mike, dayton ohio I own a service company providing care to seniors. I see many of my competitors doing well, and many of them struggling. The difference between the 2 groups is the operational skill the business is running under and the financial strenth of the company. Too many peopel are expecting or needing help, when they really needed to run their companies better financially. My point is, small business is no different than large business. Those that are financilly well managed, can andle a downturn in business and those that aren't can,t. its pretty much that simple. Teach peopel how to manage their capital, don't give bad managers more capital to waste.
From Chris Ott, Napa, CA The next big Tsunami to hit our econmomy is small business failure. The great untold story is how small business owners have been "sucking it up" and giving every bit of themselves to keep things going. This is a true testiment to the entrepreneurs spirit.
My prediction is that small business will start toppling like a row of dominos in short order after Christmas unless credit opens up for them.
From Tim, Lilburn GA Ok–I did it , a vast majority did this also—–we maximized our loan capability and it was easy– banks gave loans to every body–small business, entrepreneurs, and anybody that could sign a legal document.
Yes, the banks and the Ivy school league of wallstreet mbas used their financial math minds to figure out how to get greedy with these paper loan documents.
So now the ponzi scheme has got to bail out from top down.
Yes, banks are giving out loans–but
their reserves are running out because
new deposits from the ponzi scheme are
falling apart.
They need money to survive—not to loan out. They need trillions of dollars not billions.
From Jo Ann Rokosky Ashtabula, Ohio I have publish an animal newspaper of Northeast Ohio since 2000. In 2008 I have been forced to place it on the Web and discontinue paper copies in the stores. This is due to high gas prices, supply costs going up and no financing available. If I could get financing, my paper would be able to be in the stores,and I would be able to hire a few people. It looks likes the billion dollar companies are being helped; but what about the small businesses???????
http://www.coutrycritterjournal.com
From brendan Flynn Folks wake up. If your in the business of credit expansion your done. Retail construction real estate restaurants ect. It's over.
Shrink and some go out of business. If you had a few good years it's because we had an unprecedented event in housing. It won't happen again and this you need to go back ten years to
See what normal conditions are going to be like.
From Pacific Northwest Back in June I worried this was going to happen.
I have an inventory based business selling jewelry and apparel through an online retail store and to stores at trade shows. I have been in business for 9 years.
I have been using credit cards for working capital for years without issue.. even back in the days when I was younger and more naive about business, it was not problem to find credit card lending. I did not start my business on an SBA loan, because the banks I talk to wouldn't lend to me because my idea was quirky and didn't make sense to them.
So back in April I had an inkling this was coming. I squirreled away over 10,000 in inventory for the 4th quarter, paying with credit cards. And then all my credit lines were shut down, even though I continued to make more than the minimum payments.
I grew my business by about 50% this summer. And I have inventory to hold me through the next 6 months or longer.
But despite all this growth, I don't see any way to grow and create more jobs in my business for Americans
who aren't in a place where they can start their own businesses.
Isn't that what America is about?
I am busy at times and just hire extra help on a temporary basis. W-2 employees are too expensive.
Fact is, in order to create sustainable , living wage jobs, businesses like mine need financing.
Now that all this has happened.. the credit card companies are descending like locusts to jack up interest rates and parasatize businesses like mine which are still hanging on.
If they eat me alive, they will be satisfied for a short time, but I won't be generating any more food for them.
And maybe, having eliminated all their source of nourishment, Chase, Citibank and others will realize that biting the hand that feeds you will lead to starvation in the end.
From eiseleindefont5353 With the economy like it is, small business owners are finding a hard time money to grow their business. I would like to introduce everyone to our small business capital financing company. We are a small business too so we know what needs to be done to get you the money that you need.
If you are interested in finding out more, visit our website at…
http://www.wallstreetcapitalfinancing.com
Thanks and I look forward to helping anyone in any way that I can.
From Richard, Garden City, FL Our area is insulated from the downturn to a certain extent with defense spending driving the local economy. But there is ZERO access for small business to working capital, equipment loans, and lines of credit. We used to own our home. It is now up for sale and we rent to cut expenses. We have not paid ourselves a salary in a year. Personal funds supplement business expenses. I'm down to a single pair of shoes. But I am in a position where the family business is the only place I can work. No one will hire me due to my health and age. I'm a Republican, but the antics of this administration in its waning days make me ashamed to be associated with the GOP. Let's hope the "new savior of America" can clean up this mess and get the economy moving again
From NYC Go back to fundamentals. If banks are not lending, your balance sheet is not strong enough. If you are not making money, you need to cut cost or close your buniness. Waiting for govt bailout is the most stupid idea a business owner can have.
From Taylor Chicago, IL As a small buisness owner-20 years in business with great cash flow, until this year, we have counted on a great banking relationship to cary us through the slow months every year. We are seasonal. We are slow January-March and use our line of credit and then pay it back. What we have seen this year is even those who are GOOD customers and are paying regularly their debts are having their lines CUT! This makes no sense. The FEAR that has spread in the banking business means NO CAPITAL to even proven businesses. Our bank wanted to cut our line in half. My banker warned me so I was able to PULL OUT the remaining money on my line and put it in a CD so they couldn't CUT IT to what was already used in case I NEEDED IT! Crazy thinking, I know…but I know I use the full line Jan-March and can not afford to only have 1/2 avaialble. WE NEED TO CAPITAL TO FLOW! If abmks are unwilling to provide it, then yes, let us borrow directly. There is no reason for the government to bail out dysfunctional and poorly run companies like GM. Who will NOT USE THE MONEY to create jobs. They are tied to union contracts and will use the money to pay those $80K pensions to retired union members. Let them file chapter 11 and reorganize and renegotiate those damn pensions that put them in this hole. I don't want to pay for it… If they use that same earmarked money and handed out $50-$100K loans at low interest to small business, just think how many jobs and business they could save!!! SBA is worthless as it now. Money needs to be direct to banks with a caveat- money must be used to provide small business lending without the SBA paperwork. Come one govenrment- if you are handing out our tax dollars, make sure you are putting in some caveats so it can't be used for pensions or golden parachutes…make it flow to those who need it! The small business person who employs 80% of population….
From dude, eau claire, WI I am not in favor of more government hand outs for small business. I have a small business, I save money for when times are bad. Why should I pay more taxes to bailout those businesses that were started on credit. Doesn't any one save any money any more?
From Virginia, Orinda, CA. Research, Research, research? Well I guess all these guys didn’t do their research….either…duh…everyone forgot to research the global economic collapse…it’s not bad business management…it’s the economy.
No. 2 mall operator warns of bankruptcy
General Growth Properties blames weak retail sales and a credit market freeze.
But "given the continued weakness of the retail and credit markets," the mall operator fears it may not be able to refinance its loans at lower rates to meet its short-term cash needs. SOUNDS FAMILIAR!
Best Buy: 'Most difficult climate we've ever seen' YEP I AGREE WITH YOU.
No. 1 electronics retailer cuts profit forecast blames continued weakness in consumer spending heading into critical holiday shopping period.
"In 42 years of retailing, we've never seen such difficult times for the consumer," Brian Dunn, president and chief operating officer of Best Buy, said in a statement. "People are making dramatic changes in how much they spend, and we're not immune from those forces."
"Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we've ever seen," Brad Anderson, chief executive officer of Best Buy, said in a statement. "Best Buy simply can't adjust fast enough to maintain our earnings momentum for this year." YOUR IN GOOD COMPANY – NEITHER CAN WE.
Mounting job losses fueling foreclosures
As the economy tanks, unemployment is the major factor driving a much larger proportion of foreclosures now than in the earlier stages of the mortgage meltdown.
"It's hard to pay your mortgage when you don't have a job." HEY BROTHER CAN YOU SPARE A HOUSE?
And that's a situation that more and more people are finding themselves in. Nearly one million Americans have lost their jobs in 2008. The Bureau of Labor Statistics reported in early October that 159,000 private sector jobs were lost in September, and on Friday, economists expect the BLS to report that 200,000 jobs were lost in October.
From Lee Salt Lake City We are seeing sales decline rapidly and haven't earned a profit in 6 months. Christmas will make or break our business that has been around for 24 years.
From kp there are a lot of idiots on here that apparently don't care or understand small business. Without us, the average American will indeed suffer. My business too is suffering without the need to; if only the government will force the banking industry to loan money or close out of the banking business in whole. Within 6 months from now, over 40% of small businesses will be gone and causing us all to suffer even more. Us small businesses must be granted the lending assistance we need to continue on, to grow, expand and ultimately hire more people who in turn make our economy prosper and/or at least survive.
From ACR It looks like the folks in DC are hell-bent to give the stimulus package another try seeing as the first one didn't have any real effect.
This time it's the car industry.
While the sanity of blowing cash around and running the national debt up even further is questionable; it seems inevitable – so this time let's target unemployment, create AMERICAN jobs and pump up the economy all at one time.
Consider the following:
Manufacturing costs of motor vehicles are 65% labor (i.e.: W-2 income), that's not all direct but due to suppliers. GM alone has over 1300 suppliers. (That's a lot of jobs!)
1 in 10 Americans makes all or part of their income due to the automobile industry.
Money turns over 5 times in a year.
Thus a vehicle with a manufacturing cost of 20K produces 13,500 in W-2 income which in turn becomes a total of 65K in 12 months due to the 5 turnovers.
(This isn't magic, it's simply how the economy works.)
Our domestic car makers are saddled with legacy costs, most of which will reduce dramatically in 2010 due to contract changes. They need to survive to get there.
Our own over-zealous government with a virtual alphabet soup of regulatory agencies has been no help either.
Foreign competitors have worked off-shore collectively to meet various US gov't. imposed emission and safety standards, thus dramatically reducing those R&D costs. American car companies are prohibited from that by our FTC.
Make no mistake; it’s no surprise that once again government has been a major part of the problem.
Here's the solution.
Instead of either shipping cases of cash off to car makers; or sending us all another check:
Send out a voucher for say $1,000 good on a motor vehicle for the percentage of the vehicle that's domestic. (Civic = 70% Ford Explorer=80%)
Let those not interested in a new car sell or give away their vouchers (Ebay would be loaded with them in no time flat) and those that are so inclined can use as many as they can get their hands on up to the full MSRP of the vehicle.
This would bail out the car industry without giving them a dime directly
Further it would reduce the overall age of the nation’s cars which would in turn;
increase overall fuel economy & decrease pollution.
Strengthen the dollar!
Since vehicles with a higher domestic content would be moving better this would reduce our imports, strengthening our dollar which would in turn further reduce what we pay for anything imported …like gas!
Jobs
Instead of simply bailing out a few big companies, this would cause such a run that it would create employment throughout the industry affecting over 1300 suppliers and their workers.
That would give the economy good swift kick right where it needs one!
Pays for itself!
Since money turns over 5 times, and the vouchers are only good for the domestic content of the vehicle, every dime would be spent in the United States creating taxable income.
What is the income tax on 65,000 anyway?
(Remember? 20K manufacturing cost = $13,500 W-2 income x 5 = $65,000)
I'm sure you'll agree that this makes more sense than simply sending out checks; many of which will be used to buy new flat screen TV's usually made in Malaysia or some such place.
From Karen, San Francisco, Ca. Did I read that right? These businesses need to close? Tax cuts for those of us that are rich is the answer? — Ignorance is bliss! Tax cuts won't help small businesses NOW. Close businesses? Well – they are closing, which is raising the unemployment rate which will create a worse economy. So when you go out to drink – drink to your future come March 2009 when your taxes will be sucked up by unemployment checks as you stare at an 11% unemployment rate. No jobs – no sales – your business goes down too. It's just a matter of time. Being smug isn't helpful. We are all in this together.
From Nancy Wacker, Nashville, Illinois As a small business owner of several small businesses, I must admit that all of them are at very high risk. I believe that we might have to drop the store front for our computer store, and work out of the house if the economy doesn't improve within a few months. Also, my piano teaching business is down to just a few students because the other students had to stop lessons until their parents are both working again. My Nascar sales business of collectibles and apparel has dropped to a couple of items a week because most of the workers in this area are making car parts, and have been laid off. Our farm is suffering because the price of grain is 50% less than it was 2 months ago; but the cost of fertilizer and seed have gone way up! Also, the elevator is out of storage room for corn so that will have to be sold at today's low prices. There is no sector of the economy that hasn't been touched. I hope that President Obama will be able to provide lots of jobs for all of the people who are laid off and have no where to turn to find new jobs! I am really worried for the homeless. As the weather turns colder, and the odd jobs are gone, how will they survive? We need to rebuild America by buying American made products and taking pride in our skills. The more foreign products that we buy, the less likely that we will help America. We have been building custom built computers since 1990 & before Dell became such a big company.
Keep in mind that Dell is going to out source now to have computers made so it is likely that they will be assembled in Asia instead of America. If we could buy all the parts made in America we would, but at least we still assemble our custom computers right here in Illinois. Many of the Nascar products were made in China; but I've trying to get them from American suppliers whenever possible. Let's stop plugging the great "WALMART" who has contributed to the manufacturing woes here in America. Most of those items are foreign. If Walmart really wants to help, go back to American workers for the garments. We would have to pay more; but hopefully the quality would be better and there would be more jobs in the USA!
From Taf Baig Dear Barack Obama:
Our country needs help from the banks and the latest Treasury's awful decision making. While the treasury has pumped money in to the Banks who created this problem by their exotic securitized debt papers, the money has not come to the Small Business of America. Our rates have not gone down since the FED reduced the lending rate to 1%. Quite the opposite has happened. Our credit lines have increased the interest and the available interest has been cut. My vision would be to put the money where it needs to go, to the people and to small businesses. With a program like the disaster relief program you had suggested.
This 700 Billion dollar TARP program is only recreating the problem that initially started this mess. I hope that you can stop the congress from giving any more money to the banks and corporations before you take office. The small businesses of this country did not create this problem – we sure are paying for it.
The large auto companies don't need the money. It is the people who work for them and their suppliers. Why should the big companies get the money? What about the all those smaller start-ups that are trying to make cars using renewable energy, solar power, electricity. Etc. Do you want to see a huge change really quick? Fund the small businesses of America and guarantee the pay of the auto workers who will lose their job and have them work for these small companies. That will be change.
Let's give the money to the people it belongs too. Not the companies that created the problem. Let's not repeat the problem that got us here in the 1st place.
Let me explain the problem and events so even your daughters and my two children can understand it as well. I know that you are getting a puppy, and let me explain to you what has happened with the housing and other so called securitized loans using an analogy between houses(and other financial products) and puppies. Let's say you buy a puppy for your daughters. You finance the puppy from your bank. You agree to pay them a certain amount a month for the puppy. They turn around and sell the puppy ownership as CDOs (Collateralized Dog Obligations). After they sell the CDOs, they get money to lend again to buy more puppies. They keep repeating this for years. Finally there is a plague and the puppy gets very sick and you can't pay the bank for the puppy. The bank takes your puppy away. Now the puppy can't be resold, because there are a lot of sick puppies that the bank holds. The Treasury comes in and gives the bank more money that they borrowed from the puppy owners to loan to vaccinate the sick puppies. But, instead of vaccinating the puppies, the banks use it to buy other banks with sick dogs and fix their own balance sheets. This is what has happened so far. The banks will repeat creating wealth the same way they did in the past. The reason they will, is because not only do they have to pay themselves, but the stock holders and now the treasury.
Bailing out the automakers will have the same effect. The vaccine needs to go to the people working for the auto makers and that vaccine needs to get the workers so they can get better first.
I have owned my business since I graduated from college. Like you, I worked hard all my life and was not born into a wealth. I am sick today – I can't get a vaccine for me and my employees because the vaccine is not available. The banks used it to vaccinate their dogs.
From henderson,nv ok so we all know there is a big problem in the economy… let's fix it asap… we all know it's going to take time so let's all as americans suck it up… oh why doesn't the goverment send money to americans maybe that will help a little. it is our money right
From Anne, Los Angeles, CA I own a luxury spa company, mobile. sales are strong but since the banks would never loan me money, even though i have amazing credit. i never got any loans. i'm outraged how the big guys can screw up and get free money and there is assistance for new citizens (great) but i should get the same chance being a long time citizen. there are special loans for women, but i don't seem to qualify, grants to women helping employ women, i do that… but i don't get any grants. it's sad. we are going to end up rich on top, poor on bottom and the creative, the intelligent, the unique are going to end up doing what i have done. home businesses. downtowns will close and/or be money laundering operations. police will become more corrupt due to the economy and the temptation to make easy money quick… and if you haven't noticed, our society is angry. this country has been playing a game at the top for too long. it's toppling. it can't support the corruption. a fall is taking place. hang on and support your neighbor.
From Allan, Thailand I'm two years, 200k, and 5 months from profitability and my financing got yanked 10 days ago (my private investor is now in financial turmoil). I'm living in Asia building a distribution company focused on American products. I now have 4 distribution deals for American made products that I will import into South East Asia. I need 50k to get this project out the door – Small Business Owners need help, easy to access funds so we can keep our dreams moving and create jobs. A lot of different groups need help right now, i just hope the help gets to us in time… i'm 60 days from closing up.
From Jim, Talladega, Alabama We have a small coffee, sandwich, and pastry shop and also added gifts and a children's boutique to try and generate interest. Our business was doing great and growing until November, last year. Since then we have maxed out our credit cards, borrowed on our 401K, cashed in a CD or two, and are falling behind on payments. If the gov't can spend billions on the greedy Wall Street people then maybe they can donate a little to help out the true Main Street American's…..
From bill, cape coral florida Banks are not venture capitalists, can't fund "new" ideas, are supposed to make very safe loans (used to be mortgages!!)with low likelhood of failures. There are 8000 smaller banks out there still getting the job done. But when the economy fades, bankability declines.
From Ben, Martinsville VA I cannot believe the mindset of some of these 'business owners'. In some instances it is arrogant & juvenile.
In regards to the post regarding etailer inventory clearly the Post By Anonymous : November 14, 2008 6:22 pm was made by someone who does not have the slightest clue what they are talking about. This is probably an instance of an individual that thinks he/she knows everything — which is probably why his/her business is on the rocks to begin with. Instead of hearing a business situation that is working well for someone and saying, 'Gee Ben, that is great – how are you doing it?', they want to criticize and marginalize that success. Their approach seems to be that I must have it easier — not that maybe I am working smarter or figured out a better way to do it — I must have it 'easier', that must be the explanation. That is arrogant.
As far as the post by Posted By San mateo, CA : November 14, 2008 9:56 pm regarding 'closing our small businesses' I can only reply that you do not have any business in business. I have never received a single dime of profit from your business. I'm sure if I had demanded some of your profits when things were good you would have told me it was your business and to sod off. But now that things are not going so well you want to make it 'our' business and share the failure. When things are good you want to take all the profits. When things are bad well it is 'our' problem. Sounds like a clear case of what's yours is yours, what's mine is yours. You act as if the entire economy hinges on your business success. It does not. That is a fact. You think are not the center of the universe and the world will come to an end if you fail. That is juvenile.
Let us say your business fails — is that such a horrible thing?
1. Your customers find a better business model and get their service/product at a better price and delivered more efficiently.
2. Your employees go to work for the more profitable company that replaced your poorly ran business and get better pay/benefits because of the new company's increased profitability.
Looks like the only one losing out here will be the business owner.
The simple fact is someone will carry on where you have failed. If you cannot get the job done someone will. In 5000 years of civilization merchants have come and merchants have gone so as it was posted before — suck it up. Your customers don't want to spend their hard earned money on some of that junk you are peddling? They are skipping that $75 hair cut so they can put food on the table? They are not buying little Bobby that $325 german shephard puppy because they need gas in the car? They are not spending $4.25 on their morning latte because little Susie needs lunch money? So what, that is the nature of the free market, People prioritize. I suggest you find something else to provide other than the same old stuff. This is the way business works. If you want to play with the adults start acting like one and stop whining because you cannot get the job done. It is harsh but YOU are failing. YOU. ARE. FAILING. Get with the program or get out of the way and let someone take a shot at it that can get the job done.
Listen up — you are not the center of the universe & whether you are GM or a small business did your mommy never tell you it was wrong to steal? What you are proposing is to have the government tax (steal) money from successful & productive businesses and stick it in your pockets because you are failing. What you are proposing is wrong at the most basic level.
You are acting just like the homeowners who got it over their heads. I bought a $500,000 house with a $27,000 income. Help me, help me, help me. No one told me I was going to have to pay for this – Help me, help me, help me.. Oh I lost my job I cannot pay for this – Help me, help me, help me. It's not my fault – Help me, help me, help me.
I will reiterate my earlier statement … many of these people did not belong in their homes, many of these people should not have been in business.
From Joe, New Orleans, LA I started a house flipping company about 9 months ago. When the banks wouldn't give me any sort of loan (because I never needed to borrow money before) I decided to use all cash. The banks told me it would be much easier to get a home equity loan or line of credit. About two months ago I finished my first and second house. they are on the market, but I was unable to get any sort of loan to continue rehabbing properties while the ones I have on the market sell. With over 600,000 in equity and not a penny in debt you would think someone could give me some sort of loan.
To top it all off I was denied a 1,000 dollar credit card today by my bank for lack of credit history. In total accounts I have over 100,000 with them. These are the reasons that we have problems in this country. I have a friend who owes 15,000 and is unemployed. Recently he was approved for an additional 10k on his card despite having nothing to his name and a mountain of existing debt.
What is wrong with this picture….?
From San mateo, CA Yuo stupid fools who say close our small businesses. It is our businesses that keep 80% of the US employed. What a moron!
From susan, danville, ca I am planning to start my own group – Buck the Failout! Better yet maybe a bank – they seem to be getting funds! We are a small business – construction related – and struggling to meet payroll, something my husband has had to skip for himself lately so our employees could be paid. And we are still behind on payroll taxes, vendors who depend on us. I hope we'll be able to meet our own personal obligations next month – but not counting on it!
From Anonymous You are an online e-tailer? No one has ever walked into your store and and you had to have the inventory there to support it. That is a real world business. Create a web page and then order it from a supplier as someone orders it from you. Try having to inventory real items so you can support your business without going out of business.
From George P, ObamaLama, Saskatechenwan if we don't see the poverty it must not exist.
ha ha
you're not being thrown out of your home, you're being relocated to a fresh air environment.
ha ha
vote for Republicans, they will save us, look at how good theyve been to us over the last 8 years.
ha ha
From Anonymous I am in the real estate business (inspections and consulting). Suck it up everyone, I am not joling or being sarcastic. I am in one of the worst busineses for an ecomomic downturn. I have always hedged for issues such as this. My business is literally down 80% (for my main business. I took on energy consulting, a big business in tough times and high energy costs. I also, took on a small side job, buying dirt cheap wholesale and clearance items that I know I can sell for a profit at a flea market. Yes the flea markets suck, but I can still clear $500 a week (one days work). Seriously, suck it up. There is no Santa, Fairy God Mother, to bail you out. Obama has a shot but he is not Prez yet. Have a good weekend, time for me to drink (I can afford it)
From Michael, Orange California sounds like begging for welfare..
these businesses need to close..
tax cuts for those of us who are rich is the solution.. it will trickle down, we promise.. and lets deregulate the media more so CNN and Fox can pay anchors and hosts lots of money to put Oprah and Anniston on tv instead of showing us coffins in Iraq..
From Matt, Fairfax, VA I appreciate that you all want your cut of the handouts as well, but why not lobby for lower taxes so you keep more of your own earnings in the first place? That's better than sending it through the government in the first place and then coming back to beg for scraps. Our federal government is the most ruthless "mafia protection scheme" ever created (or so it has become). The government should never have a hand in giving money to (or taking less from) one business enterprise over another. If it is a sound business enterprise that is geared toward achieving a fuller state of productivity, it will find the funds to do so by private means. "Funding" anything less than that is wasting money.
From Ben, Martinsville Va I am an online retailer of products and have been selling online since 1997.
I'm simply not seeing these problems. My business had the best month ever in October 2008 and overall this year has been the best year ever. The big concern I am reading online is the credit crunch and I am not seeing that. I have been with the same bank for over 12 years and they are currently offering me 0% interest on two business LOC's I have totalling over 50k. I have a 20k SBA LOC sitting there available for use. The banks are literally giving away money to businesses of low risk. This is how banks make money – by loaning it to smart business owners.
My key to running the business is to keep debt at zero, manage inventory and keep payroll and other overhead at a minimum. Outsource everything when possible. I always plan for the worst case scenario and I never expand into another area unless I have thoroughly researched it. Research, research, research before every move and plan for the absolute worst case scenario before expanding. Smart business owners are not by nature optimists — they understand that you have to be prepared to weather the storm.
The majority of the people I have spoken with that are having a credit crunch seem to be stating the same thing over & over … 'oh, business was great and we hired so many people to expand and bought this and leased that and then boom! the economy tightened up.' In my opinion, these businesses were ran as poorly as GM and they deserve about as much help from the Federal Government than GM – that would be none.
I know a lot of these businesses are failing but that is a common occurence in any economy. Before we all get in a flap over this current round of small business failures we need to ask ourselves if many of these people belonged in business in the first place. Over the past 5-7 years many of these business owners had access to easy credit — would their business have failed years ago if they had not been propped up by lax lending standards?
Consider that idea in light of the problems we are experiencing with the homes in this country … Just like many of these 'homeowners' should not have gotten loans and been in the properties they were in should some of these business owners gotten loans and been running businesses in the first place?
From ed durham nc I read many small business saying they need help. Have you thought about factoring. My family run business roushfinancial /mazon associates factors your invoiced receivables. Check out my website for more info. Thank you. Good luck.
http://www.roushfinancial.com/
From kevin horan new port richey florida we closed up our till then very profitable realestate business, selling the building and working from the house. we opened up a bridal shop in december 07, buying two defunct businesses for pennies on the dollare. business is dead and we will switch to becoming an online seller of wedding gowns and accessories. i went back to school in august of 07 and will be a registered nurse in december 2010. in the meantime, with 4 kids to raise, we are blowing through savings at a rate that would make uncle sam blush and i see chapter 7 or 13 in our future. who woulda thought????????
From Lindy L, Tampa, FL This was a good letter as far as valid points and concerns.
I believe we need to send our letters to the President or our Senators and Governors. No, they probably won't read them personally, but you never know, they just might. They DO however, have people who screen the calls and write down the concerns and how many people call about them. I.E. our voices are heard?
I used to make alot more comments in articles, but since the bailout, I decided that what we have to say, should be heard by those who can do something about it. All we can do here is listen to one anothers stories, but that is good too, because it might make us aware of things we did not know, or encourage/enrage us enough to write to our government officials.
Please do write this down so you can share it with those whose letters you read that would be a good suggestion for our president.
From Margie klein, Mesa, Az and Lake Forest , CA Thankyou for reading and responding to my comment: I have read some comments from the small busineses. I too am a small business. I have laid off all my employees and do all the work myself. I am not recession proof. I have worked 20 yers in an industry. I am highly skilled and own a business that is 4 years old. We became a small business due to the downsizing of corporate companies moving their jobs out of this country and looking for higher profit margins. Please don't tell us "to stimulate a more golbal economy' or to "right size a company". You left us for greed. We have learned lesson but we worked very hard to fine tune our skills but they are not enough, we cannot redefine or reinvet oursleves over and over again. Many small business owners became ill working in corporate America and had to die or start a small business to survive. We have been crying out to our leadership for 10 years in many areas. The small business works over 80 hours a week with no benefits. Most have no health care. Health Care premiums are not going to work in a pool. The pool will get sicker and sicker and the cost will go higher aand higher with the cost of unhealthy people. The sick will eventually stay with no place to go and the healthy wil leave because they evnetually cannot afford to pay for sick pools of people. Health Care premiums must be based on each person maintaining good health. Surcharge for those at higher health risk at 10% or 15% more in premium. Creat policy that limits useage for people who have health risks they cna change. Make them pay for bad choices. Make America get healthy finacially, physically and emotionally by creating rewards for being healthy. Incentives for positives that will decrease the overhead costs, work comp, supply costs discounts, these type of incentives to keep the doors open. Incentive to lower the over all GMP we all pay into so the majority work to keep it healthy. I guarantee if a parent has a meth user in the home or a sick member of the family by choice then hit them with their bill for the cost of their choices to ignore a major burden to the American public but don't penalize the rest. That would help Americans to get back on track about what it all costs them and their part of being responsible . We are all responsibile for our part. We should not ask all Americans to pay for abusees. This only allows more abuse…. we as a society will get our message across quickly if a parent must pay their own bill for bad choices. Beleive me we all care but we all must get resposible to the penney to turn this sick society around. We the small business owner will not be able to employ people unless we get some consideration for keeping our doors open. We are not on the social programs we are paying into. These programs are set up to assist Americans that are not fortunate to be able to work. But now the programs are being abused and we encourage the wrong Americans and illegal immigrants to utilize our programs who can but don't like to work, or have undermined the true purpose of our programs. People look for entitlements for staying at home or abusing this great system of free money. Get these folk up and moving through an FDR work programs. Illegal people should be identified and sent home for processing. Would you let a student attend a college by just showing up an dnot paying for tuition and books? Illegals here can be replaced by non working abled bodied Americans who have little skill, Also Agriculture can use resourcs that America has been by passing…take the youth who hate school and make them work in a program of their skill choice or let them choose to become more educated – don't waste space but achieve with incentives for results. What happended to the youth that pushed a lawn mower and cut the neighhood residents yards for his dollars? Wat have we learned about kids that don't earn by working toward somthing. We have learned they don't respect our value system ro work ethic.. Did you and I start at the top or did we earn it. What role model does a high school stuudent call his hero? Not dad or mom or anyone in his family probably someone created for a video game or on TV. Why ar ewe wastingour valuable youth to nonsense. We do we reward for being under achieving? We the small busineses have great ideas. We the small business people are a valuable resouse and tool for getting results faster. Our ideas are from failure and success. Many samll businesses are women, single parent both men and woman, we are the main source of bread and butter work for Americans. Where can we go to learn or get involved in getting America back for Americans with jobs created for those that can work. How can we look to Obama if he doesn't recognize we really exist beyond the IRS letters for taxation. Does he realize the cost of a small busienss to keep the doors open? Does he realize we need to pay all our business bills first then we buy food for our tables? Does he know what it is like to see no money come in but the IRS wants a payment or else? Who is listening to us? Who is listening out there in the White House, Senate and in our own State official offices ? I want to be part of a solution but I can't find the people that hold the critcal key resources and brain power to help create new growth and energy into a frightening future for small business America? Are you listening? Corporate America has left our shores and left us to die. I have not heard "we are in this together from coporate America" I have only heard this from politicians…they are not suffering fom job loss, debt, housing, medical issues, aging populations problems, kids on meth, kids not working, downsizing of their jobs and life style changes, or buying groceries, raising loving productive families for the America's future. I have worked hard. I am here? I am intelligent and I can produce results. We cannot do this each indiviually there must be a core people who can make a differene with me, with ideas to stimulate our way out of the current economic crisis. Call on me America I will meet with Senators and Legislators to address our situation before we disappear? In 2 months I have lost 9 business owners who are my clients. Suffer is a word used by corporate America as we bail them out but for small business owners we just collapse from the burden left from the debris of greed. You never hear how well Joe the Plumber is doing on TV or Margie or Dennis or Chris is doing only the big guys. We pat the backs of the big guy and minimize the little guy and make the little businesses payfor it all in the end. How can America – we all the people let greed take our dollars and bail out ugly messes of corporate officials who can lobby for our dollars to grease their company's profit margins, their own wallets and leave us to pay the bill. Who gave these people permission? Why are these people not in jail for stealing our future from us, our lives and our America and our childrens future. They are not entitled to be receiving my money paid for their train wreck. I am paying my taxes for the benefit of all Americans to keep the machine going strong. Call on me. I am your American small business owner today. I am apart of all of you! Mr. Obama please read my message and respond to my sincere desire to help illustrate our issues for the small business owners you speak about!Roll up your sleeves and lets get started and we really need to hurry. The train with our money, resources and jobs are dumping our lives in the trash while quickly leaving the station and voraciously seeking new horizons to satisfy appetites for profit and greed!!
Thank you for reading my appeal!
From Ann Martin, Ga I need to get in touch with Sam Turcotte, M.D., Lavonia, Georgia. Please email me at awjames@alltel.net. Thanks, Ann
From Frank Westervelt, Ann Arbor, MI Tune CNN "Small Business" itself directly ON yourself to CNN!
The NEW Obama Admnistration is well-underway TODAY, the very DAY after an Election of HISTORIC IMPORTANCE!
Make SURE that the Comments in this "Small Business Features" are sent to the INBOXes of the People ON the Obama Transistion Team!
READ what is already written there and you will find many needed ACTIONS to start IMMEDIATELY!
Small Business (SB) IS THE GROWTH ENGINE of our Economy, but our incumbent Bush Government is, sadly, intent (by its ignorance, (not design)) on KILLING SB OFF before any real HELP can possibly arrive IN TIME to Help!!
CNN "Knows" where these "Messages" need to be directed right NOW!
JUST DO IT! please?
AND Thanks for listening!!
In General, the absolute WORST Thing that can ever happen to anyone now is to Hear someone say "I'm from the Government,,, and I'm HERE to HELP you"…
Correcting THAT must be "CHANGE Number ONE" to make it announce REAL HELP, and not be a prediction for Impending DISASTER for Businesses (small & large)!
From David Frantz 30 % federal tax grab, 15 % FICA grab, 6 % state income tax grab, 8 % assorted money grabs such as FUTA,SUTA, REGULATORY FEE'S Permitting FEES, Fuel taxes, sales taxes, Accounting fees etc = WHY BOTHER….and I DON'T!
Hey fellow PRODUCERS… get out of DEBT and TAKE IT REAL EASY! stop producing and you will see how fast things change!
I am going deer hunting today instead of PRODUCING! now that's 'change'
The BALLOT box is a WASTE of TIME! stop being the fool and CUT BACK!
From David Frantz Number ONE problem is that it is no longer worth it anymore! I find myself turning work away due to the fact that I cannot charge enough to do the job RIGHT and make it worthwhile! Not GREED on my part, but to just overcome all of the money grabs the Gov't is taking: from payroll taxes to 'regulatory' fee's and 'permitting' fees…. you name the money grab and it's there! I do NOT borrow any money at all so I know my TRUE profit of every job. I find that the Gov't is making more money for my work than I DO! So NO MORE the FOOOOL! ! I have cut way back to no less than 80 % I got my rear out of debt including my home and now I take it REAL EASY! I work one or two days a week now….if even that! I could care less about 'retirement' as I will have plenty of rest when I kick the bucket!
I stay AWAY from money grubbing churches, Pastors' financial planners & the stock market! I have not lost one dime and I am going deer hunting today and the rest of the month! My advise to you : Get out of DEBT and STOP chasing the carrot on the stick 'retirement' you will not get there! Your killing yourself to be made a fool of! Cut WAY BACK and enjoy your life!
Regards!!!! to all fellow PRODUCERS!
From Smith Auction Company Glenmoore Pennsylvania We have owned a small auction business for over 25 years now, and were based in the Chester County, Pennsylvania area mainly, but are now located in the Adamstown (Reading) Pennsylvania area. This year has been the worst year ever since we started back in the early 1980s. Attendance is down, and prices are down across the board in antiques and collectibles. The furniture, glassware, and china market has been, in our opinion, hit the hardest, with coins, early sports collectibles, good pottery, good art glass, etc. holding its own in the current downturn with the economy. In order to survive the battering of our small business, we will have to raise our commissions, which will make us more uncompetitive on the market, and will not help to get better merchandise in the doors to sell. On top of it all, people are SCARED to sell these days, even if they need the money, because they realize that their merchandise will only bring a fraction of what it used to bring. And with prices down, since we sell mainly on commission, then naturally our commissions are severely down this year too. As far as attendance, people are not attending like they used to, and are making choices to either stay at home, or if they do show up, that they will severely restrict their buying and prices paid for items. A small business, operating on a limited amount of cash, can only remain in the ballgame so long. And if their clientelle is not wealthy, where money is no object, then their battle for survival is much more intense since it is mainly the middle class and down who is being severely affected in this very weak economy. As a business owner, I understand that we were backed into a corner, so to speak, when we had to bail out wall street, but often I wonder who is going to come to the rescue of the small business owners who used to be the backbone of our nation, but are now crumbling under the debris of our fallen economy!
From Mary Corporon, Salt Lake City In our town, small local businesses are in big trouble. Many are talking about closing after Christmas if they don't get saved by a big Christmas — which will not happen. Every one of them hires 2 to 100 people.
How about targeted incentives to business which we do not have to pay back (say $1,000 or $5,000)if you can prove by your tax return in 2010 that you have a) hired a new employee or b) made a major capital purchase like a copier or a computer or a forklift, or c) have made a major capital improvement such as repainted your building or bought a new sign.
$5,000 on Main Street is worth more than $5,000,000 thrown to the wind on Wall Street.
From David Frantz I want / DEMAND the IRS to clamp down on so called 'church' groups purchasing hard core BUSINESS properties such as health clubs, Radio stations, TV stations, Strip malls etc with TAX EXEMPT TAX PAYER subsidized 501C3 EXEMPT money : They take the assets they purchase with TAX EXEMPT money take it OFF of the local tax rolls then put them out for HIRE in DIRECT compitition with local business that do NOT enjoy the 'so called' 'church' tax breaks! The so called 'church' ENJOYS at least 50 % economic business ADVANTAGE against YOU & ME!
This tax exempt crap has been going on now for the last 15 years! enough is Enough!
IRS TAKE ACTION…NOW!
From Robert, Dallas, Tx Was talking with someone just the other day about mom and pop places to eat. In a big city, there are none or almost none. The small guy can not afford $25 per square foot rent + NNN + property tax + employee taxes + +++. What this country has forgotten is that we crawl before we walk. Business starts out small and thru hard work, reinvestment and engineering we grow to be bigger business. Mom and Pop are not looking to be $10 million dollar companies. Mom and pop are looking to be a $1 million dollar company maybe. I make a product that is semi-seasonal, it NEEDS a retail location but can not afford a retail location. This business could be a $1,000,000 a year business someday. Yet, it needs about $150,000 of equipment, it needs to not have to pay $4,000 a month in rent on it trip to a million a year, it needs less than $800 a month in utilities such as power and phone and trash and security. The problem with small business all boils down to this….a large manufacturer makes a product with massive automation. That automation cranks out pieces 30, 60 or 90 per minute – for 8 hours a day, 250 days a year. All these overhead costs wind up being spread over a very larg number of pieces. A mom and pop, small business does not make 100's of pieces a day. In fact, there may be hours each day when not one piece is made or one piece is sold. This just causes each and every piece to be priced at a higher cost to cover the dead time. Once you get pricing to cover costs, then you can not compete with the guy down the street who is larger and more diverse. You can not bid on government jobs because someone out there will bid just for cash flow or due to his volume can buy work in product for less money. In todays market, the small guy does not really stand a chance. You compete with the guy down the street, the guy across town, the guy in another state, and they guy across many miles of water. And for what, $50,000 a year and the knowledge that if the business fails you are responsible for taxes not paid, credit cards not paid for product bought, for years of your life wasted. Walmart can make 3% and wind up with billions a year in profit. A small business with a 3% markup will not even make enough to stay in business a day most less a year or generation.
We may need to help all the big folks because they do employ lots of people. But the greed at the banks started this mess and now the aversion to greed is making it worse.
There is no help for the small guy – there are too many of us. We are stuck on welfare because we do not have what it takes to get off welfare. The banks do not want to help, the government does not want to help, landlords do not want to help, utilities do not want to help, and the customer has so many choices on where to shop – he will not help either.
Either you have lots of money in hand, a magic product, or by some manner get lucky….else you are stuck being small and just getting by at best.
From Sam Turcotte, M.D., Lavonia, Georgia The solution is simple: less laws, more freedom. We do not need new legislation; we need to repeal! Agency can only serve to restrict freedom and can never the reverse. Shackle the government not the people. More laws lead to more taxes. This country started with enterprise and see what we have today. The result of laws that only serve to make lawyers rich. The only fair tax is per capita; all other tax is theft. Read the Declaration first then the Constitution; they affirm each other. First the problem then the cure. We need to legalize freedom in the land of the free. Jefferson was right.
From Jim Murphy, Cincinnati, OH We have had a rough year. Sales will be down significantly this year due to the loss of Distributorship we had for a company in Europe. About 20% of our $10.5 Million in sales was erased. We are investing in our own products and in growing the business that way.
What upsets me greatly is that I employ 47 families…not just people… families. that's how I look it. I care about every one of them and have not had to let anyone go so far.
Obama talks about not raising taxes on anyone making over $250K a year. What people don't realize is that as an S Corp. whatever the company makes gets added to my personal income. On paper I am one of those guys that makes over $250 a year when I actually make less than half of that. The money the company makes, (not much this year), does not go into my pocket. It is sitting in inventory, accounts receivable and in the people I need to grow the business. Obama wants to take another big chunk out what we earn and to be honest it is getting to the point where it ain't worth the work and heartache anymore. We struggle to provide good medical and dental benefits, 401k and so on. I looked at our expenses realted to salaries such as FICA, workmens comp. and our benefits package and this costs me over $500k a year. Small business in America will soon be a thing of the past.
From Rob, Denver, CO 2008 marks the 3rd full year on my online retail website. While we started out hot in 2005 and had a couple of great years, this year has really slowed down. We are holding out hope for a shortened but profitable holiday season. Hopefully after the elections consumer confidence will return and people will spend a little for the holidays. To weather the decrease in sales this year, we focused on liquidating alot of excess inventory to keep cash flow up. Additionally, I am an accountant by trade so in September I took a full time corporate accounting job to help with cash flow. So now I'm working two jobs.
So, it this the American dream? I wanted to run my own business and help the economy grow and turn my small business into a big business. But it's not really working out so well. I'm really torn at this point. I'm stuck in a catch 22 like many small biz owners. I need more cash to grow but I can't get anymore loans or lines of credit. I can't hire additional employees so I can focus on my core business concepts. I'm just stuck.
I really do believe small business is who the government needs to help. And when I say small business I mean all the way down to people that have $1000 in annual sales. I hate when I hear about these small business people that make $250K a year. That's not small business to me! Well, enough already. Just my thoughts.
From Sanjib Sarkar Charlotte, NC Our business is surviving through the cycle. We sell online homeopathic and natural products. Sales are up slightly from last year. These are medicines that people need so they have to buy them. Since we are online, we have limited need for capital. However, the amount of orders moneywise is down. We will survive this cycle because of our low overhead but I was hoping for a much larger increase in sales than what we have. We are fortunate since the products we sell are necessary for some people good health. We also have seen people use our products since they can not afford prescription drugs.
From Dee Lanning My projections as a small woman minority buisness for the future year are good having secured 3 large city projects in the HVAC buisness. The costs of goods, fuel, freight, postage, raises, taxes, suppliers will cut off goods. We are behind on timely payments and looking at lay offs. I have contracts to meet goods to buy and hope to hire. The current crisis may close our doors. I don't know what the fallout will be but loss of home and business may be a reality. We need immediate help not false promises. Secure the working class now. When they go who will pay into the medicaid, medicare, ss funds, unemployment and worse no insurance coverage.
From R Reeves, Belding, Michigan My business is a seasonal summer resort and the gas prices and general economy of Michigan is killing me.
I want the government to help me and other small businesses that employee more people combined than both General Motors and Ford. We need help keeping our people working.
The Feds. bailout the banks and stockholders of these companies and leave other small businesses to fend for themselves. We need assistance also.
I am not looking to be forgiven my SBA loans only to have them restructured to a level I can afford during these unsual times.
Send help now. Michigan needs Federal Help Now.
From OFF THE ARK Chester, VA We have a small exotic pet store in Virginia. Our business is a bit different than most in that competition is not as intense, especially where we live and overhead has actually gone down in these economic times. Animals and supplies have retreated in cost as a byproduct of lower overall wholesale sales. All in all we are up about 35% this year compared to last. Hard to complain about those numbers and I won't.
From Neal, Conway AR I do get the business cycle we are in. What goes up must come down. Small business needs state and federal tax relief. We are taxed at the pump, on our employees, the phones we use. I also do agree that small business is the engine that drives this economy, but when the wheels have been taken off it makes no difference if the engine runs or not. I do think most small business owners are very frugal and watch what comes in and goes out quite frequently. Health care, could be one of the most defining issues of our generation. Tax relief for small business is a necessity to find a bottom in this economy.
From Mike, Mobile, AL I own a small business. It has been successful over the years. We are off about 30% this year. 25% of my staff has been laid off. I understand the reality of the business cycle. What I do not understand is the lack of emphasis being placed on the small business sector. IT IS THE ENGINE THAT MAKES OUR ECONOMY FUNCTION ! Yet, all we see is the fat cats receiving billions of dollars in help. Mind you the billions of dollars are being sucked out of small businesses. What we need is cash flow relief. Very low interest loans and breaks on payroll taxes would be an excellent start. What our "wisdom" in Washington ignores is that if the small business sector falters the entire economy is doomed.
From Amy Rhodes, Puyallup, Washington Lets get real. The SBA isn't doing its job of making sure that loans are getting to small businesses. They have attached so much red tape and paperwork that banks do not want to deal with them.
I have talked to 4 different "SBA Lenders" and each of the loan officers have confided in me that if they can do loans in-house they will, otherwise they don't want to do SBA loans. They are a pain and time consuming. So, the banks have put so many restrictions on them that they are difficult to get. Now with the current credit crunch, getting a loan is near impossible.
The days of going into your local bank and securing a loan with a handshake are gone. It is extremely difficult to get a loan for a small business and many business owners find the process humlitating and insulting. While a bank can give a loan to anyone who wants a house, most don't understand or care that small business loans allow us to expand our business and help pay employees. Bankers don't understand that we don't get a check each Friday, inexpensive healthcare from our employer or a vacation every year. They don't have the guts to do what we do.
There should be an incentive for banks to grant SBA loans and they should be guaranteed 100%. If congress gives $700 billion to bail out big business, what about making that money available to the people who don't live in mansions or drive fancy cars: the small business owners. Obama keeps talking about "spreading the wealth" How about spread it to the people who will make this economy grow.
Tax cuts and to incentives to those who pay little or no taxes anyway is not going to stimulate this economy. Making loans available to small business who NEED them is. They need to make getting the loan easier and faster. The faster we can invest and grow small business, the faster we are going to get out of this recession.
Thank you for listening.
From Greg Northwest WA My business is down from last year an average of 30 percent. People aren't spending money and are looking for the deals. They demand that we give them a deal because they know everyone's hurting. I need to purchase a couple of tanning beds to stay competitive and can't get a loan. I have had to pay over 3000 a month out of my personal checking account to make up for shortfalls after the last two months. I am one month behind paying my payroll tazes and going down fast. My home value has dropped so low that I can't get a bank to give me an equity loan more than 7500 dollars, which only gives me two more months to operate. I may just close the doors, which is terrible becuase our dream was to own a business and work for ourselves. Yet I pay for my neighbors delinquency and the morons in washington who took too much risk. Why is it the little guy always gets stepped on.
From Payroll Expert Every small business should seriously look at using a payroll as this article suggests. Why? Because doing payroll is not your core function. You need ALL YOUR ENERGY focused on providing value for your best, most profitable customers to survive this recession. I would discourage using the online payroll services because they do NOT save you in labor, you end up having to enter everything yourself, and labor is a big cost. Also, you need to go to a quality, full service payroll service to transfer the risk of penalties, which average $670 for 25% of do-it-yourself'ers. Go with a full service payroll like this to really save.
From Stan T., San Francisco, CA Up until 6 weeks ago, our company was doing alright, even though this year's business had been a little flat, we were still having our sales, and number of customer orders were growing and we were optimistic about our future. With the sudden drop in consumer confidence we have experience our sales drop in half. We have gone from 30 employees to 24 in the last 4 weeks. We had to cut 40 hour work week to 32 for the majority of the people left, and management has reluctantly agreed to take a 10% pay cut. We live and work in the San Francisco Bay Area, were its one of the more costly city to do business. If the economic experts are correct in their dire out look, there is no doubt in my mine that we have only about 6 months shelf life. Once our money that we saved over last few months run out, we will have to close our doors. I wonder out loud if I should be selfish and close now and preserve the cash in the bank for my own retirement? There is no easy answer. Bank have refused to lend money and even if the SBA can get their program together even at low or zero interest, it will be too late for many small businesses and the rest of my employees will also be standing in the unemployement line because Wall Street was too greedy.
ps: This whole business about the banks paying absurd 6 billion dollar bonus to their executives is just outrages.
From Deborah McQueen Entrepreneurs are risk takers and innovators. In our case we chose to expand a 10 year old home based business and go commercial. We borrowed against the equity in our home believing we could refinance in three years and pay off business loans. Unfortunately, the house is now worth less than we paid for it (not our fault)- the business is doing well, but we are now forced to pull too much money from it in an effort to pay down our business debt. We have borrowed against our own receivables, and are upside monthly, and can't pay for advertising or expansion. We have excellent credit and stable 21 year professional work histories, but due to DTI can't ask for additional funding. SBA needs to create tiered standards depending on where businesses are in their development. Not a one size fits all approach. The 700BB needs to pass down to SB's. We are smart, reliable, and worth the risk – with A++ credit – we are worth the risk – and the SBA is going to have to take some of it's own.
From Darrell G. Holmes West Chicago Il What is it washington doesn't get? They pumped all this bailout money to the banks. The banks are not lending it
out to the busineses. The SBA is slow
and cumbersome. What is the answer? This
economy is a disater! Set up Fema type
trailers in each county. The goverment loans the busineses the money direct. The busineses put the money in the bank
and write checks out to run their business. The banks still get the bailout money only this way the busineses get it first!! Jobs are kept
and life goes on!
From Martha Stokes C.M.T. Washinton Lawmakers need to consider that many small businesses reinvest most of their profits for expansion, especially when times are good. However small businesses are forced to amortize many expansions of their business, leasehold improvements over 30 or more years. This makes the small business owner who is investing profits back into their firm to pay taxes on that money AND it makes it appear that that business owner has made more money, putting them in Obama's over $250,000.00 "Rich Folks" category. When we put all our profits back into our business, we insure its survival during hard times, however being taxed on that investment since it must be amortized and then having Obama claim we are rich is simply naive. If small companies reinvest their profits they should be able to take that investment off of their tax bill not be charged more taxes for doing so.
Small businesses need tax incentives to hire more employees, tax deductions that make sense, and tax credits to help them grow.
We don't want a hand out. We want to be treated fairly. The small business owner, after all, is the largest employer in the US. But tax incentives go mostly to the big corporations who spend their profits on lobbying votes in Congress.
How are we doing? We are creating new products, creating new revenue sources, creating new ways of marketing, improving our service to our customers, and trimming back anywhere we can. Will we survive? Yes, with or without the government's help, we will prosper.
Thanks for listening,
M. Stokes C.M.T.
From Dr Mike; Narietta, Ga. I am a small business owner and the Govts. decision to outlaw seller funded DPA has killed my business and will kill the construction trades, homebuilding, RE and mortgage lending business. Over 7 years, I sold new homes to over 600 individuals/families who got these 100% loans to purchase. We are losing jobs, customers, lenders and not only are foreclosures increasing there a less buyers for all these homes every day. Out of all the homes I sold FHA DPA I have had less that 2% foreclosures. The purchasers pay only a bit more than rent and FHA has stable qualifying guidelines. The limit on these prices was $156,000.00 seven years ago. Now it is $417,000.00. That is too high. We must be crazy, as a Nation, to cripple one of the largest contributors to our GNP. Americans HAD jobs, they have decent credit, and they want homes. What we do not usually have is CASH. WE shall all go under because we are eliminating our customers and all businesses need customers more than anything else. Yep, we must be INSANE.
From beverley gilmore Oak forest Il Banks need to unfreeze the credit markets. The Feds gave them 700 billion and no one is talking about how it will trickle down to small business and help the ones who have suffered from this downturn. We are a wholesale lumber company now operating at a 50% staff level and still losing money because no one is building houses. We all know the reason why. The excess inventory of unsold homes both new and old is killing our industry. Something needs to be done now. Alot of us will not make it another 6 months til the new President starts demanding relief.
From TJ McCue, Seattle WA I think fear is driving most of the decisions small biz owners are making right now, or a lack of decisions. Most biz owners i know, myself included, are just making decisions a bit slower in terms of spending. But in terms of seeking new revenue, we are all kicking in the afterburners!
I have a client who has a strategic planning method that one can use in 60 minutes to get focused on key issues. I've used it in my own efforts and found that taking this deep breath and asking myself what's most important has helped me stay on task and avoid the headlines and fear factor.
http://www.60msp.com is the site that explains it.
I think we all agree that the only way to curtail high unemployment and jump start the econemy is for Washington to focus on Small business investment ASAP!!The money invested on uneployment extension benifits is not going to create jobs. The investment should be made to the employers that can create jobs and get the people back to work. Invest in America (Small Buisnes)Make the money availble to the business in a simple way so they can have access to the money. The SBA system does not work, based on the results from the large number of people that have tried that route with no results. "As long as small business contiune to strugle so will the economy,millions of families and the country." We are not asking for a handout,just a little help an the oppertunity to do our share of rebuilding the America we Love dearly.
SOS!!! HELP!!!We can do it!! Wake up Washington!!!OBAMA WHAT ABOUT US YOUR BREAD AND BUTTER!!!Ready to serve Support the small business owners.