The US Economy Is Spudering, Millions Still Out Of Work, More Jobs Continue To Be Eliminated...

June 9, 2011 - PRLog -- After all, so many big US Companies pretty much screwed so many American workers over the last 2 decades. Why not work for yourself? Have a great idea? Think you can make a go of it?

Trying to get a Small Business Loan? Good luck To You! Still banks will not help out the little guy!!!

If you want to open your own small business these days (called a start-up) don’t waste your time applying for loans from a bank or credit union! No matter what the SBA (Small Business Administration, part of the US Government) says, if you are a start up, you will NEVER find legitimate funding for your new business. NOTE: There are some non-profit organizations out there that can help, but probably most of them are overwhelmed these days with too many requests.

Case in point:

My wife started up hers, we used our own funds to get it going, but we need additional funds to market our products. It took us months to start up our business, design the products, build our own laboratory, create the web site, manufacture the product, make the labels, and we did it all ourselves with no help from anyone. Now we are marketing our line with newspaper ads, cold sales calling, letters to possible accounts, web site positioning and on and on.

Unfortunately, it does take a great deal of time for our brand name to be known, it takes time before you have a good position with regards to your ranking on a search engine. Meanwhile, we still need to buy more ingredients for future products, we still have to market and advertise (very expensive), we still need to pay the credit card bills, and we still must somehow live.

Wow, to get America going again, banks (or credit unions) still fall completely deaf eared to new entrepreneur‘s needs.

In our case, we don’t have a lot of equity in our home yet to use it as collateral, we don’t have a huge bank account, and we are far from being wealthy.  They always say, it takes money to make money, and sadly, how true. If you are rich, absolutely no problem with getting a loan. If you are a big corporation, no problem, come and get it. If you are just a regular guy, girl or family, trying to live the American Dream and own your own business, good luck! You will NEVER get a loan as a start-up! (We are still considered a start-up because we don’t have enough cash-flow history).

We worked extremely hard on a really great business plan. In fact, we spent weeks writing it. NOTE: One Bank Branch Manager told me it was the best he had ever seen, very well written. To write it, we followed all the information from the SBA web site, and compiled more info from other sources. We studied all this information and came up with this great business plan. However, it was meaningless to the banks. None were even slightly interested in helping us, and most probably didn’t even read it.

(Note: the SBA does not give out loans. They only act as an insurance policy to big banks).

Banks & Credit Unions: Their true criteria for your loan success is that you must be already successful in every way!

(And really, how can this be, if you are just starting out? And if you are so successful, why would you even need a loan?)

From what we have read, 95% of every new business fails within 5 years, many because of lack of financing and available funds. Many people get in a deep hole using their own personal credit and funds to finance their own business. Then when they need more (like in our case) nothing is really available to them.

With millions still out of work, ambitious people are tired of sitting around waiting for something to happen, so they have an idea, work on it and begin to see a way out of a hole. They seek a possible way to support their family. But these days, don’t think banks are going to help you if you are a small, just starting out business. And just who got billions in loans from tax payers like us? They will come up with more excuses not to give you a loan then you can shake a stick! And hey, with a loan we can then begin to hire employees!

If our Government is serious about getting this country going again, then they have to change the way this process works. Apparently, underwriters have lost their heart; it’s sadly only a matter of numbers to them. Gone is any human element in this process. They won’t chance anything. But maybe it isn’t even their fault, maybe it’s new regulations, I don’t know. This was not the way it was in the past, but it is the way it is now and the future.

For a better America the equation is simple: more new entrepreneurs = more jobs = a better economy.  Doesn’t anyone out there get it?