If you haven’t read this interview in the August 7 Wall Street Journal with the new head of the SBA Karen Mills, take a look at it. In particular, I like the fact that she will keep reminding Washington that even through the bailouts and the bonuses on Wall Street, the engine of growth that will drive this country comes from…you and me…the entrepreneurs. As the head of the SBA puts it, “Seventy percent of the jobs in this country are created in small business. And over half of the people who work in this country own or work for a small business. They are the engines of our economic activity here. They are going to be critical to creating the jobs that will lead us into the recovery and out of this economic difficulty.”
However, I met with a banker yesterday and she reminded me that while the SBA guarantees are in place, the business still has to qualify for the loan. That means good credit, a solid business plan and cash flow that makes sense in relation to the amount that you want to borrow.