The Wall Street Journal announced last week that an upcoming special report will explore the pros and cons of abolishing the U.S. Small Business Administration. This comes in response to President Obama wanting to consolidate a handful of government agencies, and while I’m generally all for streamlining and simplifying government, I’m against what’s being proposed in this case.
My primary reason for opposing the abolition of the SBA is that America’s small business owners need (and deserve) the support of a government agency like the SBA. Small businesses have been responsible for about 70% of all net new job creation in the past 15 years. This fact alone (though there are many others) should be enough to convince anyone with half a brain that downgrading this fragmented sector’s representation in Washington would be a mistake.
Now, the SBA is far from perfect — I know it and you know it. I can think of more than a few ways to improve it, but the SBA has done more with less than just about any other government agency. Take the 504 loan program, for instance. It’s considered “zero-subsidy,” meaning it doesn’t cost taxpayers a dime despite having provided over $30 billion in loans in the last fiscal year alone. On top of that, a study conducted in 2007-08 found that the 504 program returns about $94 for each $1 of program cost. Pretty decent ROI if you ask me.
I could go on arguing this for days (and I probably will, just not in this particular blog post), but I want you to vote for yourself. Consider the evidence and the arguments, and then go here to vote whether you think the SBA should be abolished. As I write this, more than 3,000 people have voted (you’ll have to go see for yourself which side is “winning”).
After you vote (or before, for that matter), leave me a comment below to let me know what you think. Whether you agree with my views or you want to tear my arguments to pieces, I want to hear your two cents. I enjoy all the input we get from folks like you, so share what’s on your mind…but keep it civil.
Thanks for reading and keep an eye peeled for more from me on all this soon.
Dedicated to Your Continued Success,
P.S. If you or someone you know is looking to purchase commercial property, we’re here and ready to help. January and February were two of our most productive months in company history, so we know more and more business owners are beginning to step out and act on their desire to own commercial property. Call me any time at 1-866-622-4504 or email me at ChrisHurn@MercantileCC.com if you have questions or want to introduce us to someone. We look forward to working with you and/or anyone you refer to us. Thanks in advance!
Tags: Business, Business_Finance, Chris Hurn, commercial property financing, commercial property loan, job creation, Mercantile Capital Corporation, SBA 504 Loan, Small Business Administration, The Wall Street Journal, Wall Street Journal