Dear Mr. President, Thanks – But No

Back on September 16, 2010 by a vote of 61 to 38 (with Vitter (R LA) not voting) the Senate passed the Small Business Jobs and Credit Act of 2010. Interestingly, the President said in his weekly radio address on 9/25 that this bill “will help spur jobs in the short run, and strengthen our economy for the long run” and yet we’re hearing that a lot of small businesses are not the least bit interested in this so-called TARP, Jr. monstrosity:

It seems like a simple effort to unclog a credit pipeline that has been blocked since the financial meltdown two years ago. But interviews with seven community bankers, as well as small business owners, show a reluctance to participate.
[snip]
Bank executives say their customers don’t want loans, even at low interest rates, because the sluggish economy has chilled expansion plans. Some say the federal money isn’t worth it because they fear it will come with too much regulatory oversight.

“We have taken a strategic decision not to have our primary regulator, the government, also be a partner in our bank,” said William Chase Jr., CEO of Triumph Bank in Memphis.

This is the fundamental problem for Obama and the Democrats. They have a flawed perception that the Federal Government only needs to spend more money, hand out more assistance, and assume greater Federal control over the private sector in order to improve our lives. Many of us, including these small business folks that have been asked, completely disagree:

Chase said the bank already has enough capital to meet the paltry demand for loans. “Our business customers are mired in uncertainty and are reluctant to invest in their businesses,” Chase said.

Ninety-one percent of small business owners surveyed in August by the National Federation of Independent Business (NFIB) said all their credit needs were met. Only 4 percent cited a lack of financing as their top business problem. Plans for capital spending were at a 35-year low.

Jack Rajala just laughs when asked if he wants to take out a loan today. He’s in a fight to save his family’s lumber business that has been buffeted by the recession and housing meltdown.

“I’ve seen many ups and downs; this is unquestionably the toughest,” said the 71-year-old Rajala, the third-generation owner of Rajala Companies of Deer River, Minn. Since 2008, his company closed two factories and halved the number of employees to less than 100 as orders plummeted for windows, floors and door frames. Annual revenue is down 50 percent since 2008 to $5 million, and the company is losing money.

Rajala is symbolic of the challenges faced by Obama’s small business lending initiative. The $30 billion fund will be run by the Treasury Department, and money will be awarded to banks deemed strong by regulators. Banks that have less than $10 billion in assets are eligible.

However much Obama chooses to mock and criticize the GOP Pledge to America (a thing I’m on record as being no great fan of personally) I’m inclined to side with small business operators here, and pine for the pre-Obama days of GOP control over economic policy.

At least there were more of us actually working back then, and paying our fair share of taxes into the coffers our Political Heroes can’t help but dip their hands in for the sake of buying votes and retaining power.

[Note: This article originates at Liberty.Com]