Forbes.com Melanie Lindner, 03.18.09, 06:00 AM EDT
The key lines in the article:
Chip Mahan, CEO of Wilmington, N.C.-based Live Oak Bank, which lends primarily to veterinary businesses: "The main difference is in the philosophy of the SBA, which used to be that it would pay for itself. But if you want to stimulate the economy like this administration is attempting to do, you have to try something different."
and:
The $15 billion, coming from the U.S. Treasury Department, will be used to purchase securities backed by the SBA-guaranteed loans in an attempt to jump-start the secondary credit market for small businesses.
Clearly Steve Forbes does not read everything that gets printed. He would never have allowed this story to be titled this way. This story should have been titled, "Throwing Good Money After Bad."
Obama's decision to run a (formerly "pay for itself") government agency as a non-profit, should come as no surprise to anyone.
This is more of the same. Who will buy up these SBA Loans? Treasury? With more printed money, devaluing the dollar even more? More crazy talk!
I have run the SBA gauntlet in the past. It sucked then, as it does now. Sadly, with the auto industry under government control, energy will be next, then healthcare.... All run as well as the SBA, FDA, SSA.... See what we have to look forward to?
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