Sep 20, 2011

Small Business can carry out the direction

All the stimulus money the government spent has left many small business owners asking, "Where's my bailout?"

We said Wall Street is more important than Main Street - or at least that Wall Street's butt deserved to be saved with Main Street's money.

Most smaller companies saw their credit lines slashed by the very financial institutions they - through their tax money - were helping to bail out. As President Barack Obama said last year, "Even though banks on Wall Street are lending again, they're lending to bigger businesses, not small ones."

Many small businesses rely on revolving lines of credit to meet normal overhead items like payroll. Additionally, many of these companies are in service industries, and their clients are other small companies. Most small business owners these days aren't laughing. Any Long Island homeowners who think small business development has nothing to do with them should realize that there are two pockets local governments can pick: They can expand the corporate tax base or raise residential property taxes. Every time governments say "no" to business - whether through inattention or harmful policies - and fail to expand the corporate tax base, they are saying "yes" to residential property tax increases.

If businesses are demanding payment terms of 45-120 days and banks are not lending then small businesses can't hire. The lack of lending and the restrictions on lending have caused a cash crunch on small business cash flow. This cash crunch has prevented businesses from hiring. Once the lending issue is resolved then small businesses will start hiring again. "

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