"Sen. Johanns: Small Businesses Need Loans ‘Like They Need A Kick In The Pants’"
The Senate invoked cloture today on a bill that provides tax credits to small businesses and creates a $30 billion lending fund for those same businesses to access loans. Considering that Republicans claim to be staunch defenders of small businesses (and their frequent use pf small businesses as cover to justify their desire to cut taxes for the richest two percent of Americans), this should have been a fairly non-controversial piece of legislation.
This chart, then, from the National Federation of Independent Business small business survey, would indicate that a kick in the pants is sorely needed:
According to a new report from the Congressional Joint Economic Committee, “the number of loans made to small businesses, which peaked at 27.2 million in the second quarter of 2008, has fallen by more than 4.8 million since then, a drop of 17.8 percent. The total value of those loans fell by $60 billion.” But as The Wonk Room explained, Johanns isn’t the only Republican having some trouble comprehending that banks may be hesitant to lend to small businesses in the aftermath of a financial crisis.