NFIB Statement: Response to New Small Business Lending Initiatives

Susan Eckerly, senior vice president of the National Federation of Independent Business, the nation’s leading small business association, issued the following statement in response to President Obama’s proposal to increase SBA loans and focus on community banks:

“NFIB welcomes the administration’s recognition that small businesses have been hit hard by the current economic crisis. According to NFIB’s monthly economic surveys, small business hiring and capital spending continue to be at or near record lows. And, credit has become more difficult to obtain since sales prospects and profit trends are very weak.

“Small business owners are the nation’s innovators that spur job creation, on average creating about two-thirds of the net new jobs annually. Historically, it has been small businesses that have rescued the country from a recession. But in order for small firms to continue to be our nation’s job generators, it’s critical that Washington listens to the top concerns of small business owners. “The president’s proposal to increase SBA loans and focus on community banks is appreciated and will help some firms looking for that assistance. However it is not the silver bullet that is going to propel small business owners to start hiring again. The primary problem facing small business owners right now in terms of job creation is not access to credit, it’s a lack of sales, customers and confidence. Small business owners are unlikely to invest in hiring or expanding their businesses when sales and profits are so weak.

“Following in the weak economy, small business owners are worried about the threat of increased taxes, new healthcare mandates, higher energy costs and more regulations from Washington. Small businesses don’t need more programs from Washington; they need lower taxes and fewer intrusions from government so they can take the calculated risks to expand their business.”

Source: National Federation of Independent Business.

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