President Obama has to realize some serious truths about his policy. His policies have helped banks to survive from a collapse but it did not happen so. Millions of small businesses and self employed youths who are responsible for driving the US economy did not receive the much needed support.
SMEs have faced the brunt of insolvency and thousand have already closed down. It does not just include the ones who were running one-man brands who succumbed to the pressure and gave up. So, there is need to provide them small business start up loans so that they can once again initiate a restart.
In crisis time, small businesses were the taxpayers who stood by the side of American banks. Obama says that it is now time for the banks to stand by the side of credit-worthy small businesses by providing them loan support. By doing so, small enterprises can once again stand on their feet, expand operations and create new jobs.
The SME sector did not get access to capital even though USD 700 billion went as stimulus package that helped investment banks to finalize mega deals with big companies. The reason for it is big banks did not lend out to small banks. Though the SMEs got tax-relief of USD 5,000 million, but then tax breaks are not working capital and so the small businesses simply died out.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com