If banks start lending again, will it help?

Tampa Real Estate — Wed, 04 Feb 2009 20:00:41 GMT

Yes it would help if banks started to lend! There are many small and mid-size companies that are just hanging on having the credit safety net helps them stay afloat. It is just not lending to businesses that is important, they are making it much more difficult to borrow on mortgages too. We all know the US economy is driven by the housing market. Until it recovers the entire economy will suffer.

Solution - Use FHA, Fannie Mae, Freddie Mac and the SBA to lend directly to the borrower for a set period of one year. Use current mortgage brokers to work the loans and cap their commission to 1.5%. This way the gov't can lend at 3.5% and still do well. I know this is not the intent of these entities but it is a better solution than throwing a trillion dollars against the wall and hope it sticks.

If banks start lending again, will it help?

Samuel Brown — Wed, 04 Feb 2009 20:03:47 GMT

My wife and I own a small business and we are feeling a real pinch. We are behind in our bills, and experiencing a real rough time making it through. We are afraid of going to the bank for a loan because of our financials looking so grim.

What can we do? Who can we turn to? There isn't ANY bailout for a small business in this country.

All suggestions appreciated.

If banks start lending again, will it help?

Jeff, Oklahoma — Wed, 04 Feb 2009 20:07:47 GMT

Not only will it affect small business, but the individual as well. With the banks lowering credit limits on everything to protect their exposure and assets, credit ratings drop due to lower available amounts of credit. That compiled with banks looking to only loan to prime creditworthy clients limits the amount they can loan (pool of potential borrowers shrink). The one thing that everyone has missed so far (at least on what I have read) is that the longer people are out of work, it wont matter how much taxpayer money is lent to businesses - bankruptcies will increase exponentially, and with that more losses and banks crying. I think the taxpayer bailout ought to go to the taxpayer, so they can continue to live, eat, and have a place to live, and not leave it up to businesses and government, greed and handouts. THe taxpayer will be paying for this for decades, so why shouldn't we be the beneficiaries directly instead of waiting (or hoping) that others will?

If banks start lending again, will it help?

Joel Libava — Wed, 04 Feb 2009 20:15:59 GMT

Eve,
Great article, and I hope that Gigi can hang in there this year.
Another part of the lending situation concerns start-ups, and in my industry, franchising, it is becoming a huge hurdle.

The President is all for people starting businesses, right? I hope he can get the banks to start lending money to folks that just want a piece of the American Dream.

The Franchise King
Joel Libava

If banks start lending again, will it help?

John Doe, Florida — Wed, 04 Feb 2009 21:39:01 GMT

The problem which the government has yet to figure out and that the people have been misled on is that the Real Estate REVENUE Bubble has burst... For the past 20+ years, the revenue generated by an artificial real estate market was dumped into our financial system repeatedly and multiplied by the banks due to fractional banking. EVERY company, EVERY employee, and EVERY budget (personal, corporate, and government) either directly or indirectly benefitted from the revenue generated by real estate. Now that revenue is gone, and the banks and their accountants realize this. If you were a bank, who do you lend to if you know without a shadow of a doubt that every company you lend to benefitted from revenue that should have NEVER have been there? Who do you lend to that you know with 100% accuracy that you will make your money back? WAKE UP! $20 million in RV sales, Starbucks on every corner, giant screen TVs in every house? This seems right to you?

If banks start lending again, will it help?

Dean — Wed, 04 Feb 2009 22:10:11 GMT

The problem is People, (The Taxpayer's) can't afford to borrow. Not that bank’s are not loaning money. The Taxpayer needs bailout! At least 100,000 each!

If banks start lending again, will it help?

john, sunrise, fl — Thu, 05 Feb 2009 03:45:22 GMT

there is so many small bussiness that are in the same situation and we can not get any loan and not only we had to borrow from our credit cards and now although credit car companies are getting paid but all of them had raise my intrest rate to 28percent a modern day rubbery I dont know what else to do if no help comes my way

If banks start lending again, will it help?

Tech Support Guru — Thu, 05 Feb 2009 16:18:26 GMT

one of the toughest things is tying to figure out when to let people go. You want to believe that things will turn around, but the longer you wait, the more expensive it is to your business.

If banks start lending again, will it help?

sprytling — Thu, 05 Feb 2009 18:40:57 GMT

Our banks have been nationalized. The government controls everything now and since the communist/socialists are in charge, they don't want small business to succeed. Communists believe that the government owns everything. This is America, so we have to actually witness the government taking everything over so that we will accept this. So if small business fails, the economy collapses, government owns all big business and the banks, and it provides all the jobs, decides who we can listen to, that our free speech rights are gone, eliminates people of religion from government...we are no longer the United States of America, we are the United Communists of America. Take heed...actually listen to what is being said and what is happening. This is not just about our economy.

If banks start lending again, will it help?

SCOTT — Fri, 06 Feb 2009 03:14:06 GMT

YOU DID 20 MILLION BUT YOU CANT PAY THE BILL. WHAT DID YOU DO WITH THE MONEY. POOR YOU

If banks start lending again, will it help?

Brooker, Brewster ny — Fri, 06 Feb 2009 13:29:37 GMT

People i feel for all the people and business that are being affected by the so called lending frezze but please be aware of one BIG main thing. Most of you have had it easy when i came to getting money there were many banks all over that lent money that if you look at the whole picture should not have. But the practice has been going on for years and eveyone got use to easy money ( no credit checks, 0 down, 130% leanding, floor plan at 200% was normal) but as soon as the economy stops as it has the banks go back to the OLD WAY. That means nothing over 75% with money down and your life not the backs on the line.
So yes there are alot of folks that will be hurt by this but if there was an audit of that account most would not pass the mustard.

If banks start lending again, will it help?

Todd, Dalton, Ga — Fri, 06 Feb 2009 20:22:50 GMT

as a small business owner, i made the most money cause i assumed the greatest risk, now that the risk of losing everything is a possiblity, i am the first to react to my lifestyle choices,cutting my compensation, ect., unfortunely if everyone starts making lifestyle choices like this, all sectors of business will be affected, and the way things were, will never be again, not at least in my lifetime.

If banks start lending again, will it help?

Cecil Dye — Fri, 06 Feb 2009 22:16:53 GMT

We need tax bracket reductions for everyone including corporations. We need 3.5 to 4.0 % mortgages available to all qualified mortgage holders and home buyers. We need a tax credit of $1,000 for each $25,000 in home purchase price, we need a tax credit for accelerated right off of vehicles in 2 to 3 years. These things will free up cash flow for Americans.

If banks start lending again, will it help?

zev — Fri, 06 Feb 2009 23:50:01 GMT

If this naiev country stops the billions of dollars
going to Israel and Egypt this will help the
american people and the economy.

If banks start lending again, will it help?

Michael Saint Joseph, MO — Sat, 07 Feb 2009 00:37:37 GMT

Do you really want to fix the problem? Start at the very bottom. Give them money let them get caught up,buy a new car or go on that once in a lifetime vacation. Here's the catch... the banks get a return, money gets in the system and the economy is kick started again by the middle class. Without just giving the money to the Banks,Autos and the big dogs. Make some of Wall Street Go To Jail. Make the people protecting us, that did not, GO TO JAIL. Whoever is Respondsible make them be subject to liability since they were not. Before they give out a dime,,, think about it, just for a second, does this person and whom they represent really need the money. Or are we just bailing out the guy who made too much, who took too much and will it come back. The only people this hurts is the top. Good Luck to the small guy! You will need it.

If banks start lending again, will it help?

Kelly, North Carolina — Sat, 07 Feb 2009 06:11:57 GMT

$31 Million in the last 24 months and now struggles to pay the electric bill? Sounds like corporate greed to me. I bet Gigi's personal finances aren't 'struggling'!

If banks start lending again, will it help?

George, Los Angeles, CA — Sat, 07 Feb 2009 06:29:18 GMT

Sprytling, what utter and complete nonsense. It's not the government that's the problem here. Wall street and unregulated financial markets (and yes, a whole lot of speculative greed) got us to this point. Should we just let all the banks fail then? Including the one you have your life savings in? You really think the government wants to put all small business OUT of business. Get real. Get educated.

If banks start lending again, will it help?

P WAYNE — Sat, 07 Feb 2009 07:18:27 GMT

Face it yawwwww. We have come to a point in this country that we have taken pause to reflect on our priorities. We do not need all of the crap that we did two years ago. We are embarrased to live in our mcmansions and drive our big suv's. In short we are abandoning ship and downsizing. hoping to sell some of our crap on the way out. UNTIL all of that changes, things are not going to get better.See yaww in the soup lines. the race is winding down. THE RATS HAVE WON

If banks start lending again, will it help?

P WAYNE — Sat, 07 Feb 2009 07:20:07 GMT

If banks start lending again, will it help?

Eric, Los Angeles, CA — Sat, 07 Feb 2009 14:50:33 GMT

I could care less about all the talk of "Socialists" and "Communists." The only thing I care about now is CUSTOMERS. Last quarter was truly rough and this year isn't starting off well at all. Like many posts I've read here, I'm at a loss as to what to do. Three of the four contracts we won last year were cancelled due to the state not having the funds to finance the work. ONE contract is keeping me afloat now, and with new customers coming in like tumbleweeds these days, I don't know how much longer I can hang on.

If banks start lending again, will it help?

Roland — Sat, 07 Feb 2009 15:15:18 GMT

Stella says that the banks picked up their marbles and went home. I also think that the consumer is not anywhere near as interested in an expensive RV, that gets lousy mileage, can't even be parked in many residential areas, and costs additional money to park, when they see the economy crashing all around them. Even retirees to whom the RV life holds an appeal are looking at their 401k's shrivel faster than an amorous male doused in ice water.

Stella, face it. This economy is just too far gone for your business to survive. It really won't matter if the banks start lending - the consumer is nowhere near as interested as they were a while ago. And that is going to become a pattern in any industry that involves large ticket items and discretionary spending.

If banks start lending again, will it help?

RICK THORNE, STURGIS SD — Sat, 07 Feb 2009 21:11:03 GMT

I’m a staff writer for Veterans today and just posted a fantastic article and video concerning the vast corruption within the American government.

PLEASE GO to: http://www.veteranstoday.com

rthorne
disabled Vietnam Era Vet

If banks start lending again, will it help?

Mike — Sat, 07 Feb 2009 22:43:11 GMT

It's to late for me my business is going BK next month. I went from myself to 18 people since 1996 and now with the economy and cash crunch i'm done. I used up all resources. My entire life savings gone along with my business. Time to start over again.

If banks start lending again, will it help?

Need Help Now, Illinois — Sun, 08 Feb 2009 14:25:41 GMT

Scott rails that Gigi made $20 million. I hope he realizes that this number no doubt refers to her gross sales. From this amount, she has to pay her wholesale costs, salaries, property rental or mortgage, and all the other myriad costs that go into running a business. You can have $20 million in gross sales and make little to no profit, or lose money.

We also have a small retail business and are facing the same problems as Ms. Stetler. The bank we deal with received billions in TARP money but won't cut us a break to ease us through this crisis. We have been around 50-plus years and employ at present 30 people (it was more a few years ago, but we've had to lay people off to deal with the current situation). We don't know if we will be able to weather the storm and are hoping against hope that some of this relief money will trickle down to us, and fast. Otherwise our already hard-hit community will be looking at another 30-plus people out of work, another vacant retail property, and more loss of local sales tax revenue (not to mention state & federal income tax revenue that won't be earned).

If banks start lending again, will it help?

Michael Treadwell — Sun, 08 Feb 2009 15:14:02 GMT

This will be my last year in business for myself, provided I can make it that far. My sales are down over 75%. I closed my storefront and now just servicing other small business accounts. The downturn has just turned people away from buying.

If banks start lending again, will it help?

Jaye — Mon, 09 Feb 2009 21:07:21 GMT

Let's hope that when things do turn around, people don't still think of themselves as "Consumers" and they won't want most of the junk China (and everyone else) wants to sell. No SUV's to go with the other 3 cars at the MCMansion. No one looting their companies (and the world) out of greed. Maybe we won't need so many businesses????

If banks start lending again, will it help?

MAC Man — Tue, 10 Feb 2009 23:31:02 GMT

WHatever happens, i hope they do not bail out all these people from foreclosure. Just because they bit off more than they could chew, doe snot mean those of us in more modest homes should pay the price!!

If banks start lending again, will it help?

Randy Leesburg VA — Wed, 11 Feb 2009 01:26:50 GMT

Come on P Wayne, I busted my butt 10 hour days for years to afford my McMasion and big SUV. I paid my bills, taxes, paid cash for my cars. I did not do anything to deserve to see my 401K go to nothing and see all the jobs around here dissappear. I played by the rules and got hosed by the fat cats cheating the system!

If banks start lending again, will it help?

Chuck Rogala, Casa Grande, Arizona — Wed, 11 Feb 2009 18:59:15 GMT

For any small business owner’s who have B2B account receivables can Factor those receivables. This is an easy alternative for small business owners to extract the money they have in their account receivables and employ that money for other use, supporting business growth, financing payroll, or meeting operating expenses. A factoring line of capital can save your business. You should check it out.

If banks start lending again, will it help?

Cable Guy — Tue, 24 Feb 2009 16:39:37 GMT

I can't beleive my tax payer $$ are bailing out these bastards! The little guys always get screwed!

If banks start lending again, will it help?

Mark Stoneweapon — Sun, 29 Mar 2009 16:54:58 GMT

After the elite have tapped the last drop of water from tax payers, inflation will accelerate, and higher interest rates will come tapping next. Anyone who has equity now should liquidate to rid all debts. The more distance you have between yourself and debt the better off you will be.