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More (and Last) Small Business
Friday May 6, 2005
One graf in a press release from the office of Speaker Dennis Hastert dated May 3, 2005 (which I share with you to point out how important small businesses are to the US economy) states:
According to the Committee on Small Business, 99.7% of all businesses in the United States are small businesses (23.6 million) and they account for 75% of all new jobs that are added to the economy.
Wednesday's Mullings struck a nerve and generated (even after accounting for notifications that I have won the national lottery of Upper Iguana and that the widow of the former Prime Minister of South Salamander wants me to be her business partner) some 300 e-mails.
Here are a few of them:
A number of e-mails pointed out this fatal flaw in my thinking: "Have you considered you proceed from the mistaken assumption that the Small Business Administration should even exist?"
It would benefit small business more to close the SBA and not spend anything than for my tax dollars subsidizing more manufacturing overseas.
I was involved with set-asides for 20 years. The large firms use a women-, minority-, or disabled- owned firm; or an Indian tribe as the front in a Joint Venture, supposedly to "support" the small business in learning to do the work.
Usually, the large firm does the work and the front company gets their 10% - much as they would if they were the sub instead of the prime contractor.
This is both due to the inherent problems in the system and the willingness of the contracting agencies in the government to look the other way - because they do have a vested interest in, or bias for, the large companies: When they retire from [the government] there is a nice job waiting for them at a consulting company.
E-mailed to SBA: I saw that $2 billion in SBA funds supposedly earmarked for small businesses were allocated to large businesses. Where can I get a listing of the companies receiving these funds and the justification for this apparent breach of your charter?
Have you ever heard of Rich Galen? You might want to think twice about getting on his bad side. I'm pretty sure he might have one.
As a member of the SBA's National Advisory Council your comments are troubling. I applaud you for raising this. Have had concerns for a while.
Small Business owners learned long ago that in order to get money from the SBA, you had to have money or already have a perfect credit rating (which would of course qualify you for bank loans and you wouldn't need the SBA in the first place).
Preach it, Revr'n Rich. I'm in the choir and I hear you loud and clear!
The most important lender to small business is not the SBA, it's Citibank, Chase, B of A, and American Express. More small business is financed by credit cards than the SBA.
The other big financer of small business is probably home equity loans. An important reason for home ownership to continue to grow is that rising values give people the security to go venturing out on their own.
Back around 1999, my wife and I started a business with an SBA loan. I have to say that the folks in the Van Nuys office were very helpful throughout the application process, and we were funded in due course.
So, I take it you won't be speaking at the SBA's Annual Award dinner next year?
So, let me get this straight, there is a opening for MC at next year's dinner?
Man, they should've let you put your column out.
Man, remind me always to let you put crap at the tables of dinners where you speak.
On the Secret Decoder Ring page today: A link to the SBA page which alleges to answer the question, "What is a Small Business?; a perfectly useless Mullfoto and the required Catchy Caption of the Day.
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