The thing here is that the SBA does not give out loans - they only guarantee them. banks - who have stringent obligations to their depositors, investors and shareholders - have to decline those with bad credit histories. Instead of putting the blame on the SBA - who guaratees loans to help entice banks to lend more - we should be thinking about ways to teach our kids (or anyone) how to properly manage money. In school they teach reading, writing, math, etc, but do any of them teach how to properly manage debt, balance checking accounts, manage money. In this country - you have to have some debt in your life - to buy a house, car or start a business. I recently read an article that stated that banks do have money to lend and would like to get it out there - but they are seeing less qualified borrowers (poor creidit and high debt loads). I don't blame the banks - I put myself in their shoes - would I lend my money (my personal money) to someone who has demonstrated in the past that they cannot properly manage it. My answer is always 'no' I know this is kind of harsh - but it is also reality. Banks and most lenders look for two things - a willingness to repay (credit history) and ability to repay (cash flow or conversion of assets that generate cash). If you don't meet these minimum standards - you cannot get a loan.

Thanks so much for the link. You asked a pretty good question, too bad they didn't answer it. If I could make a change to the SBA- it would be to stop pushing debt so much and focus on providing quality training and education. They have hundreds SBDC's across the country- very few are adequately funded and can only keep quality consultants because they love what they do. I suggest either doing with the programs or doing them right and giving them a chance to hire, retain, and continually educate the best talent. Leading to excellent consulting and training for small business owners.

I think it will depend on how tied her hands are. If she is given some freedom to do the things that are needed - we may see some positive results. If her hands remain tied - nothing will change. While there will be a new administrator in the SBA - the mind set of congress and the President needs to change in favor of small businesses before Main Street will see any real benefits. The SBA did get $15 billion to foster more loans to small businesses through higher guarantees and lower fees for both borrower and lender. But, the SBA and many of its lenders are stating that they are just not seeing qualified borrowers. Thus, no matter what they do with these programs - if you are not qualified - you will not get a loan in any market. We need more information and resources to better help these small businesses become qualified. If that is helping manage their business or improving personal credit scores - or whatever is needed - then that is what we should be doing.

Thanks so much for the link. You asked a pretty good question, too bad they didn't answer it. If I could make a change to the SBA- it would be to stop pushing debt so much and focus on providing quality training and education. They have hundreds SBDC's across the country- very few are adequately funded and can only keep quality consultants because they love what they do. I suggest either doing with the programs or doing them right and giving them a chance to hire, retain, and continually educate the best talent. Leading to excellent consulting and training for small business owners.

Good point. Will she have the power to make some changes? Hope so.

Good point. Will she have the power to make some changes? Hope so.

The folks I have dealt with at the SBDC's did enjoy their jobs. Pay them more!

The folks I have dealt with at the SBDC's did enjoy their jobs. Pay them more!

I would think the new administration and congress would allow SBA to start doing what it should be doing; helping small businesses. Lets stop putting new or existing business into debt, lets be realistic that doesn't really help them in the long term unless they are 100% for sure going to be successful. They need to figure out how to properly help business owners with bad credit from mistakes in the past and not just turn them away. I think in the next 6-0 months we'll see some real improvements.

I would think the new administration and congress would allow SBA to start doing what it should be doing; helping small businesses. Lets stop putting new or existing business into debt, lets be realistic that doesn't really help them in the long term unless they are 100% for sure going to be successful. They need to figure out how to properly help business owners with bad credit from mistakes in the past and not just turn them away. I think in the next 6-0 months we'll see some real improvements.