This is probably one of the least utilized and talked about programs during economic downturns. WHY! That wasn’t a question, it was a total “I don’t get that” moment.
The SBA (should be called the NEW Business Administration) is charged with helping new business development. With basically 80% of the jobs in America accounted for by small businesses, the value of the SBA is paramount to our success down than road and absolutely one of the critical steps toward solving our economic problems- job creation will start and end at this level. The SBA continues to develop future new businesses, mentor and support individuals with the economic spirit and resolve to start a new business, and see it gets funded and founded- even at a time when its economic resources have not been sufficiently expanded.
Idea- Remember the idea about repatriating profits from overseas? Remember the 100 Billion dollar injection to the SBA? My idea is to shove that liquidity away from random spending on other issues or pet projects and put it right in the hands of people dealing with Americans in need of startup capital. Think about it as the loan the banks can’t or won’t give. Think of it as the push that ideas need to become entities, before they can qualify for large venture capital (and all the associated strings that come with VC). Think about it as a way to renew hope in the dream of American capitalism.
Side note- With 100 Billion of new money injected, it would create 500,000 new businesses (assuming a startup loan of $200,000 on average). That would immediately employ 500,000 people as owners and assuming history repeats itself- they would employ approximately 4 additional people per business (historical average). The net gain for this 100 Billion of New Business injection would result in approximately 2.5 million new jobs in America.
New businesses get people off unemployment. New businesses hire about 4 people over the first couple years on average. New businesses buy things from existing businesses. New businesses pay taxes. New businesses are the engine of our economy.
New businesses become the ultimate solution for the ultimate problem- JOBS in America.