Monday, February 28, 2011
Recovery Act did not whip things into shape
Just for the record, the $787 billion Recovery and Reinvestment Act did not do much for many business owners.
Publicly traded companies got most of the money, according to the Peepperdine Univ’s Private Capital Markets 2011 Report.
For one thing, few business owners could understand how to get in the way of any credit or tax breaks in there.
Also, it was too slow. Even the president had to admit the shovel-ready projects weren’t ready for the shovel or even a low-paying trowel.
In terms of access to credit, the SBA was allowed to eliminate fees on federally backed loans—this allowed SBA lending to go back to pre-recession levels. This was too small an amount to make much of a dent, though,
The tax breaks were complicated and didn’t provide immediate cash flow—nothing happened to "help" until it was time to file taxes.
About a third of stimulus projects went to small business—only 23% had to under law.
This helped some companies—but take it from me, becoming a govt contractor is maddingly difficult…I am still trying to do it.