Join me in demanding a true SBA for businesses under 20 employees
by chuckblakeman, Window Shopper
- Created: August 20, 2010, 7:39 am
The SBA serves every single business under 500 employees, which constitutes 97.7% of all businesses in America. This is a constituency so expansive as to hae simply no meaning. Even 20 employees is still over 90% of all businesses, but at least there is some level of definition to '20 employees'.
To call 97.7% of all businesses 'small' is no different than calling all people under seven feet tall 'short'. The SBA is not the SBA, it is the MSBA - the Mid-sized Business Administration. All the SBA has done for the last 50 years is make it easier for mid-sized businesses to become mega businesses, at the expense of true small businesses.
The first loan program in the history of the SBA actually designed for businesses with under 20 employees, the ARC program, was a complete disaster. Ten months after inceptio, the paltry $255 million doled out for use by these 99.7% of all businesses is still not loaned, and the only businesses qualifying for this loan are very healthy businesses that don't need it. Imagine if we have given money only to the healthy banks and to Ford - that's exactly how we're treating small businesses. While GM runs off with tens of billions, the 27 million small businesses can't pry $255 million out of the government as even a token of support.
The only reason these conditions exist is because politicians don't believe small business has an organized voice. It is time to change that. The existing small business advocacies groups all serve narrow agendas and have been completely ineffective in this role, largely because the government keeps buying them off.
Please join me in putting together a unified voice of small business to advocate with government for a seat at the table. It is time that politicians stop using us as a photo op while raising money for themselves.
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