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Obama calls on lenders to support small businesses

By Michael D. Shear
President Obama capped a week of focusing on small businesses with a radio and Internet address in which he warned against letting mom-and-pop entrepreneurs fail to recover.

"If it's one thing we've learned, it's that here in America, we rise and fall together," Obama said in the address, released for delivery Saturday morning. "Our economy as a whole can't move ahead if small businesses and the middle class continue to fall behind."

The taped address came just days after Obama announced a series of small business incentives and assistance aimed at loosening the flow of credit.

"While credit may be more available for large businesses, too many small business owners are still struggling to get the credit they need," Obama said. "These are the very taxpayers who stood by America's banks in a crisis - and now it's time for our banks to stand by creditworthy small businesses, and make the loans they need to open their doors, grow their operations, and create new jobs."

Republican critics called Obama's proposals this week a repackaging of old ideas that would not do enough to spark a renewal of small businesses that could create millions of jobs.

House minority whip Eric Cantor (R-Va.) on Wednesday called on Obama to do more for the smallest companies. And he condemned the Democratic majority for pursuing tax policy that he said would harm the futures of many small business owners.

"Today, I call on the President to pledge to small business job creators across this nation that he will veto any legislation that will raise their taxes," Cantor said in a statement. "Simply put, Americans don't believe that the Administration has done enough to put Americans back to work, and doing so starts with a commitment to small business."

Even as he focused on helping small business, Obama continued to push for passage of a health-care reform bill by the end of the year. In his address, he said his proposals "will allow small businesses to buy insurance for their employees through an insurance exchange, which may offer better coverage at lower costs."

Republicans continued to push back against Democratic health care plans. In delivering the GOP's radio address, Sen. Mike Johanns (Neb.) argued against the proposals that Obama and the Democrats are pursuing.

"The bottom line is this: we're nearing 10 percent unemployment. We have a record budget deficit, and many families are working hard just to put food on the table and to pay the bills," Johanns said. "Yet, there's no doubt about it: these proposals will negatively impact pocketbooks and paychecks across America."

Johanns added: "President Obama has promised open deliberations in front of C-SPAN cameras for all Americans to learn how reform will impact them. However, a 1,500 page bill, full of carve-outs and backroom deals, is currently being brokered behind closed doors."

By Eric Rich  |  October 24, 2009; 6:00 AM ET
Categories:  44 The Obama Presidency , Barack Obama  
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Financial education is a necessary step to ensure that the business owner understands the structure of the loan and how successfully manage their business's debt exposure. I run a small business marketplace that connects business owners to financing options
We frequently receive questions and concerns surrounding a persons eligibility for various lending programs - both conventional and SBA financing. A large majority of business owners do not know the fundamentals of business financial management. For example, yesterday we received a request from an entrepreneur looking to purchase a business with no money down, a poor credit history and little knowledge about the assets involved in the acquisition. Businesses need to know the right questions to ask and access to the fundamentals of financial management. There’s a lot of freely available information and advice from our expert network for business owners. However, I think the government needs to take a lead in launching more seminars and workshops to help businesses scrutinize their finances and growth projections.

Posted by: Biz2Credit | October 25, 2009 6:24 PM | Report abuse

*U.S. Code, Title 12, Chapter 16, § 1831 o Prompt Corrective Action (b)(2)(B)(i) and (d)(1)(A). Capital distributions (dividends) and share buy back programs restricted.

U.S. Code Title 12, Chapter 16, § 1831 o Prompt Corrective Action (f)(2)(F) The appropriate Federal banking agency shall* carry out this section by taking 1 or more of the following actions ... (F) Improving management. ... (i) New election of directors. Ordering a new election for the institution’s board of directors. (ii) Dismissing directors or senior executive officers. Requiring the institution to dismiss from office any director or senior executive officer who had held office for more than 180 days immediately before the institution became undercapitalized.…

*The term ’shall’ above in this legal context, is used to denote a mandate. Legal mandates denote required action and if NOT performed during a crisis, result in an attempt to defeat imperative law. If upheld, an imperative law serves to protect people and important offices from abuse. Subverting or flaunting imperative laws, during a crisis, is to invite abuse and indulgence. Subverting or flaunting imperative laws, one right after another, is to provide the wrong model behavior to other professionals looking on that office.

When applying weightier provisions of 12 USC 1831 o Prompt Corrective Action, the law seeks to apply lessons learned from careful study of Savings and Loan problems. The Savings and Loan problems also, stem from real estate boom of that time. ["Imprudent Real Estate Lending" Page 57, paragraph 4, "The banking problems of the '80s and '90s came primarily,… from unsound real estate lending."]

The weightier provisions of 12 USC 1831 o, were made into law as a result of this time consuming study. The laws were adopted and signed into law, to protect American people from financial lapses and misdeeds of executives, boards of directors, and yes CEOs made Treasury. They were designed to protect Americans who are not in office, from: fraud, incompetence, investment mistakes, bad faith acts, youthful experiments, guile and chicanery – from large and small corporations, and specifically, financial firms.

These many failures and short comings which manifest during the Savings and Loan era, were problematic because the FDIC was to guarantee depositor funds at such institutions that were being poorly managed, or, mischievously managed. They were also problematic because the government did not have shielding from offenses, or repetition of many offenses from the most mischievous of the actors.

Posted by: bruerr | October 25, 2009 2:21 PM | Report abuse

Some of us certainly are either inconsiderate or uninformed still on the length of time the president has been in office.

Nine months is still a very short time for the president to have moved to save everyone. I lost my small broadcasting business of 15 years in 2007--ran out of advertisements to keep the business..then used up all the personal cash I had. Do I also blame the president for my current predicament? No! Never, ever got an unemployment check to pay a bill.

There is enough blame to throw around. The depression was in full gear before Obama. But I am pleased that he's reminding the banks on their obligation to help Mom and Pop Stores. Yes, it was the tax dollars of poor Americans who saved the big banks, its time to extend a helping hand to the other side of America.

Mr. President, just keep reminding them who saved them in their moment of "need." Chuckle quite hard, when I think of the level of irresponsibility that allowed middle America to save the plutocrats.

Posted by: Victoria5 | October 25, 2009 9:55 AM | Report abuse

After retiring from being a federal employee (law enforcement) with almost 26 years of service I tried owning a small private investigative business. I had the unforunate experience of being audited by an IRS rogue revenue agent who made me realize that I rather not have a small business at all than continue dealing with all federal red-tape. Since I am not U.S. Rep. Charles Rangel but just an average taxpayer who have been filing income taxes since 1970 at age 15, I cannot deal with rogue IRS employees since on of my jobs as a federal criminal investigator was investigating public corruption and sending corrupt employees to prison. More and more small business are closing down for similar reasons while the businesses who pay with cash, do not file SSA papers, etc. are growing. Guess being a crook pays off. Sorry Mr. President Obama, unless you do something with the IRS and TIGTA, our country cannot operate being bullied the way we were bullied under George W. Bush. I haven't seen the changes you promised but only repeats of the Clinton and Bush administrations.

Posted by: doctormiguel | October 25, 2009 5:18 AM | Report abuse

Yes! Obama is going to HELP them! Just like Barney Frank helped people buy houses! That worked out really well, didn't it? Obama helping them by telling lenders to give them money to pay the increased taxes he is trying to put on them is a whole lotta help. Government is not the solution to the problem, government IS the problem. Look it up.

Posted by: chatard | October 24, 2009 8:30 PM | Report abuse

LOL! :-D

O'Bomba thinks he is kidding any shrewd Small businessman!

It is waaaayyyyyy too late for me. I have already lost nearly everything I ever had.

As I cried for action, I was ignored. As a small Businessman operating a Swimming Pool Company in the Moronic Sub-Primed Market that had everyone getting Loans based on "Flipping Houses" within two Years, the number of Pools people got shrank dramatically!
Then, came the Finance Meltdown!
As I sat watching my company die on the Vine, I Begged for our Government to get People like myself-Independent Contractors, Sole Proprietors, and Self Employed $$$$$$.

Money that could have saved my Company, my Truck, and in my case, my Apartment/Office.

With no Unemployment available, no Welfare and no Credit(Mine was soooooo destroyed), I sank into a living Hell!

F' the D' Banks! F' O'Bomba!

Damn the whole Dimocrat Party to Hell!

Take Bushie the catatonic Brain-Dead Chimp with you!

Meanwhile, forget all the Welfare sucking minorities the SBA caters to, and just get IRS Backed Emergency Loans out to People who need it! People like myself who are not getting any help any other way!

Yeah, our Credit is DESTROYED! So WHAT?!

The Banks and the idiots who wrecked them, are responsible for my Bad Credit because of what they did!

Try to keep up you Morons in that Beltway:

$500 Billion= FIFTY MILLION $10,000 Loans!

$10,000 is MORE than enough to pay off delinquencies and restart stalled Lives and Business'!

Credit Worthy! What a ridiculous statement from a detached Elitist POS! :-(

Posted by: SAINT---The | October 24, 2009 6:17 PM | Report abuse

This is almost comical if it weren't so serious.

Obama threatens the Chamber of Commerce this week because they said his taxing, healthcare, Cap & Trade policies are killing small business.

So what does he do to distract everyone? Blames in on the banks.

It's the banks fault.

No it is not. As a former business owner, Obama's policies are killing businesses - not banks but Obama.

Which ones?

1. Letting Bush tax breaks expire.
2. Increasing taxes to pay for Healthcare plan
3. Penalizing businesses with another tax for Healthcare plan
4. Alternative Minimun tax
5. Cap & Trade
6. HR 2749 (food safety act)
7. Additional taxes in healthcare plan on medical device companies.
8. Card check.

All of the mention items kill small business. Since most jobs are created by small business Obama is killing jobs.

Forget about the bank loans. No one will be able to be profitable in any busines with the over taxation proposed by this President.

Need anything else?

Posted by: debmries | October 24, 2009 3:19 PM | Report abuse

Folks if you think the pilots on that NWA flight to Minneapolis were off course, welcome to the Obama's world where a gps is needed to find where this administration is headed! He's spending more time demonizing Fox News, the insurance industry, and anyone else who criticises his wobbly policies. Dealing with a 9.8 % unemployment rate and the loss of 2.7 million jobs since he took office, do not seem to be priorities, whereas photo ops, cocktail parties, and fundraising are number one of the list. The latest disclosure that millions of dollars of first time funds for homebuyers went to teenagers, four year olds, and illegals. Thank you federal government for another fiasco involving mortgages and our taxes.

Posted by: nmg3rln | October 24, 2009 3:09 PM | Report abuse

Speaking of business:
We don't have enough H1N1 vaccine to go around because we outsourced vaccine manufacturing to other countries. Those countries have wisely decided to use their vaccines on the own citenzenry before exporting to us.
Free trade.
The only thing we export is our abilty to produce anything useful. Thanks, Reagan legacy.

Posted by: rooster54 | October 24, 2009 1:14 PM | Report abuse

As a side not to those who do remember we can recall that in the last three adminstrations and the congress, when the stock market was booming etc, they were all proposing that up to 15% of all 401(k) and payroll deducttions would be diverted from social security to direct investment into the stock market. When the market died that play of course died and try to find anyone who had any part in it. Almost all of the same members of congress who were part of that deal still set on the same committees that are working the health care bill. Now is that not a comfort to you I do not what else you want.

Posted by: KBlit | October 24, 2009 12:09 PM | Report abuse

The Government has helped small business in two ways.
1. Removed the need for providing pensions and inserting, in most cases, non-employer contributions to 401(k). AND we how well THAT turned out!
2. Is going to exempt or not require small business employers to provide any type of healthcare and instead dump all the employees onto government insurance.

Gosh we do not know how to thank Congress or WH enough for taking care of the workers.

Posted by: KBlit | October 24, 2009 11:56 AM | Report abuse


If banks won't lend to small business, perhaps the Small Business Administration should expand its criteria to fill the breach -- encouraging private enterprise to get with the program, or lose the business.



Where is the DOJ Civil Rights Division investigation into the covert deployment of silent, harmful microwave and laser directed energy weapons systems on unjustly targeted Americans and their families by a Bush-legacy federal-local "multi-agency coordinated action program" that continues to commit civil and human rights violations under Team Obama...

... including government-enabled, warrantless GPS-activated, covert "community stalking" harassment, surreptitious home entries, and domestic terrorism? OR RE: "GESTAPO USA"

Posted by: scrivener50 | October 24, 2009 11:44 AM | Report abuse

Mr. President, talking about it will not get it done. Instead of the large bailout for banks and financial institutions, you should have directed some of the bailout to small businesses. In fact you still can do just that. Reduce all the salaries of executives of banks and financial institutions that receive bailout and also stop all cash compensation to these executives. Use the payback from these banks and financial institutions and support the small businesses and bring them back to a healthy state. It is the result of the greed of the banks and the financial institutions that cause small businesses to reduce their payroll or go out of business. Until unemployment is reduced their will never be a total recovery. Also the welfare of Iraq and Afghanistan has taken on a greater importance than the health of the US economy. This kind of thinking will also slow down the recovery of the US economy.The White House and the Congress has forgotten who put them there!!!!!! WAKE-UP !!!!!! We still cannot see a light at the end of the economical tunnel!!!!!

Posted by: jk330 | October 24, 2009 9:25 AM | Report abuse

So now is the time to help small businesses? You mean, those that are left and haven't already collapsed. In case Obama doesn't realize it, small businesses generally run at a much closer margin of profit and loss and any drop in revenue (or increase in taxes) can sink them. This "Pronouncement from on High" is just more PR BS.

Posted by: Georgetowner1 | October 24, 2009 9:25 AM | Report abuse

Big business does not need credit. They get government bail-outs or become part of the government after the take overs.
Every move this stupid government makes handicaps small business. Obama is not focussed on helping the US. He creates meaningless images for the western world but provides real help to the Muslim world. I guess they are not efficient enough in killing us yet so Obama will give them technological aid to do so.
I wonder if we would have won WWII if would have funded Hitlers war machine with technological help and financed his projects. Do we have to give financial aid to countries who enough money to finance Obama's multi trillion dollar debts?
We have to do that while our economy is in shambles, real unemployment exceeds 15% and businesses do not have the money to create jobs?
What problem has this guy solved?
Good sounding words, deceptive speeches, teleprompters and all his "expertise" are driving this country into hell. Impeach the guy for treason. We cannot wait until the next election.

Posted by: duif100 | October 24, 2009 9:04 AM | Report abuse

For crying out loud... it was ACORN, Obama, Barney Frank, etc. telling the banks who to make loans to that got us into this mess. Keep Obama and ACORN away from the banks.

Posted by: fury60 | October 24, 2009 7:59 AM | Report abuse

More pandering BS from Washington. I have yet to hear a proposal from anyone in DC that betrays anything but ignorance of how any business, especially small business works.

DC's idea of helping small business is more set-asides and identity politics based affirmative action programs that are full of corruption and sham companies playing the game. But then that is all DC is about - a big political game.

Maybe if the President actually ever had a job he'd know something of what he speaks. Nice platitudes won't solve these problems no matter how much the media replays them without ever looking under the covers.

FWIW - I am a small business person trying to make it despite all the obstacles those in DC trying to "help" put in the way.

Posted by: rbibb1 | October 24, 2009 7:05 AM | Report abuse

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