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Tuesday, Nov. 03, 2009

YOUR SAY: Small business slighted by stimulus

Sunday’s column by Karen Mills, Small Business Administration administrator, made for interesting reading. I believe her assertion that the administration’s stimulus plan is working for small businesses may be somewhat overstated.

First, the $730 million authorized for small business stimulus was less than 2 percent of the total stimulus package. To sharpen the contrast, Chrysler and GM together received $85 billion. Early in 2009, the SBA introduced American Recovery Capital loans. These small loans were intended to be the centerpiece of their recovery effort for small business. According to an Oct. 27 SBA report, only 3,500 ARC loans, totaling $115 million have been approved. This is more like a drop in the ocean rather than a drop in the bucket.

As a small business owner, I can relate first hand to the difficulties that many local businesses have experienced in the last 12 months. The large bank that was so eager to provide financing in 2007 seemed honestly surprised that our profits would be negatively affected by a recession. I spent a long weekend completing the paperwork for an ARC loan only to receive a series of form letters from the bank stating the application had been refused. My banker, now difficult to reach by phone, was unable to provide a satisfactory explanation.

Mills’ editorial gives the reader an impression that the government has come to the rescue of the small business segment and the recovery is now under way. The truth is, many of us are holding on with whatever resources we can cobble together to see us through.

Richard Dannenberg is the owner of AlphaGraphics in Macon.