Small Business Owners: Are you surviving the Economic Crisis?

Alright folks! We’ve been hearing the hubbub in the news that help is on its way for the recovery from the economic crisis in the form of the stimulus. The question is – will it be enough for small business? As I'm sure everyone reading this knows, the contents of the new economic stimulus bill is being argued back and forth in both the House of Representatives and the Senate. In fact, a joint committee is now working on a final bill that President Obama is pushing on a daily, sometimes hourly basis to get done.

We all know that this bill and the past "TARP" bill have enormous amounts of money to both help and bailout some of our major financial institutions on Wall Street and elsewhere. But what about small businesses? I was looking for information on this topic and ran across Keith Girard’s latest blog, “Small Business Stimulus Bill: Is "Half a Loaf" Enough?”

According to the blog, “Already, it seems, some groups are sowing the seeds of disappointment.”

If you are in small business, then you know that small businesses and startups create a huge percentage of new jobs. Mr. Girard’s position is that “in order to create new jobs, small businesses need access to capital”. Currently, access to capital in the form of small business loans are down. He says, “The SBA says it is racking up mounting losses from loans made through its lending programs, as small firms struggle to make payments or go out of business. Loan losses more than doubled last year, topping out at $1.3 billion compared with $504 million in 2007 and $276 million in 2005…The net result is a vicious cycle. As banks tighten credit, small businesses become strapped for capital and cut back or go under, forcing bad small business loans to pile up on balance sheets, which the banks use to invoke even tighter standards.”

The lack of access to capital is creating a situation for those managing small businesses wherein not only can they not make payments on funds already borrowed, they cannot borrow more; and they are downsizing adding to the highest unemployment rate some have ever seen.

The current actions taken by President Obama and Congress may be just “half a loaf”. Is it better than nothing? What can we, as small business owners and managers do to counteract the effects of the economy?

Here at Silkin Management Group, our clients are mostly sole practice owners and very much a part of the small business community. We have rallied our clients to out-create the economic downturn and its effects by consulting them on savvy financial strategy and sound management principles to steer them through this storm. Our viewpoint is that it's up to each of us to respond to the challenges present in today's economic climate armed with knowledge and carefully planned actions that are conducive to long-term survival. Now is the time to roll up our sleeves and get to it! Congress can pass bills intended to give the economy a shot in the arm, but aren't we cause over our own future? Let's not wait for others to act on our behalf.

It’s a tough market out there and getting tougher. What actions are you taking to survive in these times? This is the topic of our Discussion Forum located at Silkin Management Group Facebook Page. We look forward to hearing from you.


Larry Silver
President
Silkin Management Group


Silkin Management Group Home Page
Visit our Facebook Page
Silkin Management Group Press Room
Solutions Magazine