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The Chief Officers' Network - your business advantage / Management / SMEs / SME's: Obama tells banks they are not helping

Obama at last noticed some serious truths: his policies may have prevented wholesale collapse of large banks, but they have done little or nothing for the millions of self-employed and small business that drive the US economy.

"These are the very taxpayers who stood by America's banks in a crisis, and now it's time for our banks to stand by creditworthy small businesses and make the loans they need to open their doors, grow their operations and create new jobs," Obama said.

It's too late: business closures due to insolvency have run into the thousands so far this year and that doesn't include those who were running one-man-bands who simply gave up.

USD700,000 million went into a stimulus package that has worked out nicely for the investment banks: the money has been used to put together mega deals, sometimes of totally healthy companies.

Yet the SME sector not only got no hand-outs, it didn't get access to capital or, if it did, it was too little, on too stringent terms, too late. The reason for that was simple: the big banks refused to lend to the little banks - there was no trickle down factor.

The SME sector did get tax reliefs: USD5,000 million.

But tax breaks are not working capital. And that's why so many businesses have died.

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