Rep. Sanford Bishop is touting his support of the $30 billion Small Business Jobs Act (John Barrow and Jim Marshall also voted for the bill), the latest gimmick from the Obama Administration that is supposedly going to create jobs and open up credit for small businesses.
However, that we’re seeing reports that say that banks and small businesses may decline to accept the money:
President Barack Obama’s $30 billion small community business lending program faces one big challenge: many of the community banks and businesses it’s supposed to help don’t want it.
The lending program is part of a bill that passed the House of Representatives on Thursday and now awaits the president’s signature. The legislation contains a mix of tax cuts and credits aimed at helping small businesses. The centerpiece of the bill is an effort to make billions of dollars available to community banks for loans to small businesses.
It seems like a simple effort to unclog a credit pipeline that has been blocked since the financial meltdown two years ago. But interviews with seven community bankers, as well as small business owners, show a reluctance to participate.
Bank executives say their customers don’t want loans, even at low interest rates, because the sluggish economy has chilled expansion plans. Some say the federal money isn’t worth it because they fear it will come with too much regulatory oversight.
“We have taken a strategic decision not to have our primary regulator, the government, also be a partner in our bank,” said William Chase Jr., CEO of Triumph Bank in Memphis.
Nevermind that the rebirth of Keynesianism has hit with a thud. How was this supposed to create jobs again?