Tuesday
Mar022010
Levin Blames Michigan's Unemployment Woes On Lack Of Small Business Loans
Tuesday, March 2, 2010 at 3:13PM
By Sofia Sanchez- University of New Mexico/ Talk Radio News Service
According to Sen. Carl Levin (D-Mich.), the drop in small business lending is responsible for his state's dismal unemployment rate.
“The reduction in the number of loans going to small businesses is dramatic. In my state of Michigan, it is down 74 percent in the last two years,” said Levin during an appearance before the Senate Banking Subcommittee on Economic Policy. “We’ve got a 15 percent unemployment rate and there is a connection between those two.”
Bank loans and leases have declined for the sixth straight quarter, with total loans to commercial and industrial borrowers declining 4.3 percent and real estate construction and development loans declining by 8.4 percent, according to the Senate Banking Subcommittee on Economic Policy
“It is no secret that roughly two-thirds of the jobs in this country are created by small businesses, and it is clear that we must once again rely on the engine if small business growth is to move us down the path to a full recovery,” said Sen. Sherrod Brown (D-Ohio), who chairs the subcommittee.
$30 billion in TARP funds have been set aside to spur lending. However, a debate has recently opened up between lawmakers over whether the funds should be distributed through banks or through the Small Business Administration.
According to Sen. Carl Levin (D-Mich.), the drop in small business lending is responsible for his state's dismal unemployment rate.
“The reduction in the number of loans going to small businesses is dramatic. In my state of Michigan, it is down 74 percent in the last two years,” said Levin during an appearance before the Senate Banking Subcommittee on Economic Policy. “We’ve got a 15 percent unemployment rate and there is a connection between those two.”
Bank loans and leases have declined for the sixth straight quarter, with total loans to commercial and industrial borrowers declining 4.3 percent and real estate construction and development loans declining by 8.4 percent, according to the Senate Banking Subcommittee on Economic Policy
“It is no secret that roughly two-thirds of the jobs in this country are created by small businesses, and it is clear that we must once again rely on the engine if small business growth is to move us down the path to a full recovery,” said Sen. Sherrod Brown (D-Ohio), who chairs the subcommittee.
$30 billion in TARP funds have been set aside to spur lending. However, a debate has recently opened up between lawmakers over whether the funds should be distributed through banks or through the Small Business Administration.
Reader Comments (1)
Senator Levin you are 100% correct. Superior financial group is the #1 sba lender in the country by number of loans. But we are limited by you, congress from doing any more... you see we are capped. Thats right congress and SBA rations our ability to loan under the Community express program. While you congressional people increase limits to 5 million on SBA loans the businesses that create jobs in recessionary times get capped. The SBA advocacy "REPORT TO THE PRESIDENT" 2009 page 10 states the problem very clear. "During the past two recessions, firms with fewer than 20 employees were the only ones with positive net job growth; the larger category of small businesses with fewer than 500 employees, as well as large firms with 500 or more employees both experienced net employment losses. Really simple stuff senator, expand small loan programs like Community express and make them permanent. Or you can raise the SBA limit to 5 million and help less than .50% of the businesses out there on main street. How many small businesses that create jobs with fewer than 20 employees need 5 million? Answer ZERO!