Wednesday, April 01, 2009

Obama's New SBA "Program": FAIL

You recall that Obama, Liege, announced a new Gummint program which would 'free up SBA lending' for small businesses.

Too bad nobody's going to cooperate.

Two weeks after President Obama announced a $15 billion initiative to spark lending for small businesses, every major provider of these kinds of loans says the plan will not work as designed.

The conditions attached to the program, which require these financial firms to surrender ownership stakes to the government and limit executive pay, are so off-putting that these companies say they will not participate.

There are four major players in SBA financing, which comprise about 80% of the market. None of them are signing up for the program, given that none of them want Barney Fwank as their new Manager of Compensation.

HT: FoxPolitics

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