On Wednesday, President Obama announced that his administration will now focus efforts on giving small businesses greater access to loans from local banks. This matters to CMA because most of our members would be categorized as small businesses under the definition used by the Obama Administration. Many CMA members have reported experiencing a combination of slow sales and slowing payments from current customers, which has created a greater need for working capital to maintain operations. In our Los Angeles Business Journal editorial this summer, CMA advocated that policy leaders in Sacramento and Washington, DC focus more attention on helping trade creditors (many of whom are small businesses) gain access to bank credit as a stop gap for their working capital needs. Wednesday’s pronouncement seems to support this plea, but yesterday on the KNX 1070 News Hour, I expressed concern that this new policy would not be enacted fast enough to help our members and their customers in time to keep their doors open and business credit flowing. My comments appear during the last five minutes of the hour long broadcast, go to KNX Business Hour 10.22.2009 and fast-forward to the end of the program.
Numerous news outlets have covered the story (Google search: Obama to help small businesses), but I have included links to stories/editorials from local papers in California and Nevada (see below). The Las Vegas Sun editorial offers the caveat: “As Congress considers the proposals, though, it should make sure the lending programs are as transparent as possible so the public can see evidence that small businesses are being helped.” I agree, and to that end, I will be following this story through the media and through members that directly benefit from this new program. If this program could help your company borrow needed working capital and you would like us to follow your efforts to secure loans from local banks under this program, please email me at firstname.lastname@example.org.
Mike Mitchell, CAE
President & CEO