What can Washington do to help small business owners save jobs and keep spending? Exactly what the president-elect promised during the campaign.
(CNNMoney.com) — What could jump-start the economy? Affordable loans for small business.
With bank lending almost frozen and consumer spending down sharply, entrepreneurs foresee a Main Street wipeout if Washington doesn’t take action soon to shore up the nation’s small businesses.
“It’s killing us right now. We can’t expand, we can’t buy inventory; we’ve had to do everything on credit cards because the banks won’t even look at us,” said Amy Rhodes, owner of A-2-Z Scuba in Puyallup, Wash. “Every single dime of our $40,000 in profit last year we sunk right back into the business. Now sales are down, and we’re making ends meet out of our own money – which makes it more difficult to pay our mortgage.”
In a mid-October campaign appearance, then-candidate Barack Obama proposed a “small business rescue plan” to address entrepreneurs’ need for working capital. “A credit crunch has dried up capital and put these jobs at risk,” Obama said at the time. “If we don’t act, we’ll be looking at scaled-back operations, shuttered shops, and laid-off workers.” more