Community Development Banking List
02-02-2010, 08:30 PM
Original message from: teresa@wamicrobiz.org
This press release was put out by Claudia Viek of the California Association
for Micro Enterprise Opportunity (CAMEO). In it she raises concern about
the lack of impact the stimulus efforts will have on the country's smallest
enterprises. Those whom we look to in generating jobs and business
vitality.
February 1, 2010
Obama's Economic Policies May Not Help 24 million Small Businesses Create
Jobs.
President Obama's address Wednesday spelled out two specific policies to
assist small businesses to weather this Recession - tax credits for hiring
new workers and TARP funding to community banks to lend out to credit
starved small businesses.
Both are good ideas, but unfortunately, neither of these key policies will
reach the vast majority of small businesses in the US - those with fewer
than 10 employees, and the many self employed. Tax credits will not help
businesses whose profits have evaporated. Neither do they provide an
incentive to a business that is struggling in the current economy to add on
another permanent employee.
Instead, funding should go to the network of Small and Micro Business
development organizations, Women's Business Centers and local Chambers of
Commerce throughout the US, to ramp up management assistance and coaching to
help small businesses stabilize and grow. If just 10% of the 24 million very
small businesses added one employee, it would create 2.4 million new jobs--
more than the total jobs the Administration claims it has saved since the
$787 billion in economic stimulus went into effect.
Many community banks are leery of TARP funds attached to onerous conditions,
and others view taking TARP funds as a sign of weakness. Rather than
attempting to convince these banks, and to avoid delays, the Obama
Administration and Treasury Dept. should channel TARP funds through the
capable nonprofit community lenders who are serving a backlog of Main Street
businesses. The CDFI Fund, under Treasury, has already proved itself an
efficient and swift conduit for millions of stimulus funds to our
communities.
Micro [Enterprise] and Small Business Development organizations and lenders
have proven effective in helping small businesses start, grow and create
jobs. The Obama Administration should utilize this community based
infrastructure to fulfill its mission to get us out of the Great Recession
through small business development and by tapping into our entrepreneurial
tradition.
There are approx. 20 state microenterprise associations in the country
working to build an infrastructure of support for the micro-business sector.
A sector with over 24 million businesses employing over 17% of our workforce
and creating more than 900,000 jobs per year on average. Maybe it's time to
look at stimulating this economy from the bottom up!
Teresa Lemmons, MSCED, EDFP
Executive Director
Washington State Microenterprise Association
little WSMA logo
teresa@wamicrobiz.org
www.WaMicrobiz.org
Coming together - Sharing together - Working together - Succeeding together
This press release was put out by Claudia Viek of the California Association
for Micro Enterprise Opportunity (CAMEO). In it she raises concern about
the lack of impact the stimulus efforts will have on the country's smallest
enterprises. Those whom we look to in generating jobs and business
vitality.
February 1, 2010
Obama's Economic Policies May Not Help 24 million Small Businesses Create
Jobs.
President Obama's address Wednesday spelled out two specific policies to
assist small businesses to weather this Recession - tax credits for hiring
new workers and TARP funding to community banks to lend out to credit
starved small businesses.
Both are good ideas, but unfortunately, neither of these key policies will
reach the vast majority of small businesses in the US - those with fewer
than 10 employees, and the many self employed. Tax credits will not help
businesses whose profits have evaporated. Neither do they provide an
incentive to a business that is struggling in the current economy to add on
another permanent employee.
Instead, funding should go to the network of Small and Micro Business
development organizations, Women's Business Centers and local Chambers of
Commerce throughout the US, to ramp up management assistance and coaching to
help small businesses stabilize and grow. If just 10% of the 24 million very
small businesses added one employee, it would create 2.4 million new jobs--
more than the total jobs the Administration claims it has saved since the
$787 billion in economic stimulus went into effect.
Many community banks are leery of TARP funds attached to onerous conditions,
and others view taking TARP funds as a sign of weakness. Rather than
attempting to convince these banks, and to avoid delays, the Obama
Administration and Treasury Dept. should channel TARP funds through the
capable nonprofit community lenders who are serving a backlog of Main Street
businesses. The CDFI Fund, under Treasury, has already proved itself an
efficient and swift conduit for millions of stimulus funds to our
communities.
Micro [Enterprise] and Small Business Development organizations and lenders
have proven effective in helping small businesses start, grow and create
jobs. The Obama Administration should utilize this community based
infrastructure to fulfill its mission to get us out of the Great Recession
through small business development and by tapping into our entrepreneurial
tradition.
There are approx. 20 state microenterprise associations in the country
working to build an infrastructure of support for the micro-business sector.
A sector with over 24 million businesses employing over 17% of our workforce
and creating more than 900,000 jobs per year on average. Maybe it's time to
look at stimulating this economy from the bottom up!
Teresa Lemmons, MSCED, EDFP
Executive Director
Washington State Microenterprise Association
little WSMA logo
teresa@wamicrobiz.org
www.WaMicrobiz.org
Coming together - Sharing together - Working together - Succeeding together