Last week was hell for SME - small, medium enterprise in Washington D.C. While bailing out big banks is no problem, trying to pass a $30 billion loan package to help small businesses (that come from small business banks) is being used as political collateral by the GOP and has become a taboo to lobby for by the groups many of us pay regular dues to.

In a story picked up by the Wall Street Journal and other news agencies, Bloomberg reported that three of the top small business organizations who regularly taut themselves as our advocates have gone completely mute in further lobbying for this bill to pass. National Federation of Independent Business (NFIB), National Association of Manufacturers and the biggest - the US Chamber of Commerce have all gone quiet as this bill is going to Washington.
(Small Businesses Find Chamber, Lobby Allies Mute on $30 Billion U.S. Aid)

We Know What's Best for You: By halting commentary these organizations are suggesting their support for big banking. When is the last time a big bank did something swell for us small businesses? Try refinancing right now with these below 5% rates. Entrepreneurs are notoriously considered bad risks to banks. LTV and interest is all they care about even with the reforms. I understand the concerns that banks could make bad loans just to participate in the program (aka greedily pocketing as much interest as possible and then writing off the bad debt.) But, is that for the Chamber or these organizations to decide? No - our government needs to learn from its TARP mistakes and rein in the bankers practices.

"Fighting for Your Business" My personal favorite is the U.S. Chamber of Commerce. Follow the link to their website and note their tag line "fighting for your business". Funny how their well-paid lobbyist-on-a-leash, Bruce Josten is not fighting. Maybe he fights better from a distance? With a $150M budget and a highly political agenda, I find it uncomfortable to attend local chamber events knowing a few dollars is supporting fat-cats at the top doing nothing on our behalf.

What Choices? Like Lucy above, I find myself lacking solutions. The government wants us to hire more people. The people we need are used to inflated corporate salaries with benefits and all the trimmings (even scaled down packages are better than what we can offer). If we aren't incorporated, we are often taxed double. Some cities are mandating health care coverage at low numbers of employees. If we look to big business for their models, they use overseas workers to keep down costs. The U.S. is putting small business at a disadvantage while expecting us to save the economy.

Am I the only one here? Doubtful. I'm just nutty enough to speak up. But, now it's your turn. No matter where you are reading this, take a moment to comment. I want to hear what you know, think and consider. How are you managing these business challenges in this economy? How are you keeping from spitting nails? (I'm obviously blogging, but that won't solve the problem.) I thought to throw my money and time behind the best organization that will lobby on our behalf in Washington only to learn even more than what I bemoaned above. I have become Lucy and after this economy turns, I'm going to need a loan for all that botox for my permanently furrowed brow.

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Rick Steeby  - Owner     |70.110.26.xxx |2010-08-05 03:38:03 The increasing of debt doesn't help the government and it doesn't help small business either. Banks large and small are taking tarp funds for the profits and securing their positions while they wait out the recession. The proper way to stimulate the economy is to drop corporate taxes not adding to the taxes for small business to pay for more money to loan small business. To make new jobs leave money in the system not take on more debt and then add more taxes it makes no sense. Private investors will invest where banks won't the minute they know that businesses have the green light and they won't be strangled by taxes and debt. "Government isn't the answer government is the problem." Reply | Quote 1 0

Paula Pollock   |24.4.117.xxx |2010-08-05 05:21:31 Excellent, Rick! I was secretly counting on you for the "counter point". That is also very, very true. Big government is not the answer, either. Socialism has already proved it doesn't work. I wish I could will myself to have a great epiphany and solve this. It's one of the reasons melatonin is a diet staple. Reply | Quote 1 0

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