Quote:
Originally Posted by kane
I was reading something by Mark Cuban the other day and it was actually kind of an interesting idea. He thought was that the last stimulus didn't work because it was a mess and just threw money in all directions hoping people would use it to create jobs. His thought is that they set up a system where a company could go directly tot he government and tell them how many people they would hire, what they would pay them and what they would do. The government then gives those companies that money and the money must be spent on those employees.
The idea is that if we do this for a few years many companies that want to expand but either don't have the capital or are unwilling to hire right now because of uncertainty could bring on new people and expand their business with very little risk. Hopefully in a few years these expansions will be profitable and those companies can then pay for those employees themselves.
It is a little crazy, but at least it puts money into a business owner's hands and it is used to create a job.
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I can tell you from recent experience how difficult it actually is to even get a low interest loan from the SBA. We had qualified for an SBA504 loan to add a large addition to our main plant. After nearly 4 months and a mountain of P&L's,Proforma's,balance sheets,personal loan guarantees.etc,etc,etc we were told now we would start the next phase. I shit canned the plan and went directly to the bank. A 20 year loan at under 5% and the entire process took a few days over a month.
The really disappointing thing about the SBA was that they had recent bond issues and have several hundred million dollars that no one is using.