Did Small Businesses Miss Out on the Big Bailout?

Apr 15, 2009

Recent survey shows that many owners feel that they did

A recent survey in the City Business Journal Network found that close to 60 percent of small business owners think the Obama administration doesn’t understand the needs of small firms and that more than 40 percent are less optimistic about the state of the U.S. economy than they were when the president took office.

Though the majority identified themselves as Republicans, that number also revealed nearly half of those surveyed think Obama will only serve one term based on what he has accomplished in the first 3 months of his presidency.

Much of the frustration that small businesses are feeling comes from how the bailouts of banks and the auto industry have overshadowed the needs of companies who are suffering from irresponsible action of larger companies during this economic crisis.

The sentiment stems from the fact that all of the bailout money may help larger firms tread water for a while, but that money is not making it’s way to smaller companies.

Many feel Obama doesn’t understand that all it takes is losing one client or having to wait on payments from other clients for a small business to really suffer, or be unable to meet payroll.

Another frustration is that smaller businesses are still having a hard time getting bank loans, preventing them from expanding, hiring and growing their business.

Some owners are even calling for Obama’s administration to require that banks loan money to smaller businesses based on their credit history and existing debt, citing that businesses that have been run well should be allowed to run things the way they see fit, and businesses that are failing should be allowed to fail no matter how large or small.

Those who continue to support Obama point out that his administration is only 90 days in to dealing with a situation that was handed to him and took initial steps that were necessary to stabilize the economy and that more time is needed to see if this administration has done more harm than good.

For more information about the survey taken and insight in to how your small business might be impacted by recent actions taken by the president, read the article Small Business: Obama Doesn’t Understand Us, click here.