Small business owners are frustrated about not being able to get loans because of the high credit score requirement by lenders. During President Barack Obama’s visit to Tampa Bay this week, one entrepreneur did not hesitate in expressing his frustration.
Steve Gordon owns a small environmental company in Clearwater. He had some attempts in getting a loan but to no avail. He was the one who raised the question every small business owner has in his or her mind.
Gordon noted that the federal government is able to make loans directly available to banks, Wall Streeet, and automakers. However, he does not know why the federal government cannot use the Small Business Administration to make loans directly available to them. Gordon is among the many entrepreneurs all over the United States who cannot get a loan because of poor credit rating. His score suffered greatly when his multi-billion housing project went down along with the housing collapse.
Meanwhile, President Barack Obama said he is launching a stimulus fund worth $30 billion to aid the small business sector but he has no plans of not going through banks and making loans directly available to entrepreneurs. Still, this puzzles Gordon, knowing that the Fed was able to directly hand out $170 billion insurance giant AIG.
The entrepreneur believes a public opinion is needed regarding them matter. He suggests requiring small business owners to try getting a loan in their community bank first. If they do not get approval within 60 days, then that is the time they go directly to SBA. Then the agency will be the one to evaluate a business’ product, its potential, and the ability to create jobs. He was not given the chance though to air his proposal to President Obama and to other entrepreneurs who joined the forum in the University of Tampa.
Gordon demonstrated a water saving device he designed. He said he could sell millions of those but he does not have enough funds to make it succeed in the retail market. He bemoaned that banks have more interest on this credit score rather than his potential.
He said it is all about credit score. Even if business owners do have the collateral, they do not have the credit ratings that can merit the approval of banks. If he had the money, he would have been able to buy foreign patents and to launch ads for his product. His proposals would have brought many jobless residents back to employment.
Refusing to give up just yet, Gordon sent his proposals directly to the White House.
