We need a small business administration or do we? How could a lifetime entrepreneur make such a statement? Well, let me explain. You see, at the 2009 National Minorities Enterprise Development Conference, Karen Mills (SBA Director) stated that the SBA was able to get 1,000 banks that were not making loans after October 2008 to start making loans, but this is nonsense, as there were only 1727 small business loans made in the first six months of 2009.
Now, the FDIC Rules might have helped recently as they have changed the rules on the amount that banks must have on hand, and their criteria for taking over banks due to the fact they are out of money now. And in reality those 1727 little business loans had more to do with the stimulus package addition where the SBA would cover 90% of the risk, as opposed to the 80% that they used to cover.
Karen Mills also claimed that the GSA was the only agency of the Federal Government that had covered all 5 major criteria for small business contracting and duly gave them an award.But if you know anything about the GSA Small Business Contracting or have ever done business with that agency, the insanity of the solicitations and the advantages to women and minority businesses, turns out to be a huge disadvantage to any other small businesses.
What we need is much less public relations propaganda, fewer dog and pony shows, and more reality when it comes to the SBA, and if not, why not just shut it down completely and save 10s of billions of dollars in the budget. Seriously, why not consider this.