I read a fascinating article in today’s Chicago Tribune business section by Greg Burns about Leonard Maniscalo, the President of a manufacturing business in Chicago that promises 150 new jobs if he can get a $1.3 million federal grant. He’s owned the business since 1982 and currently employs about 40 people. He has a vision and strategy to grow the business by re-engineering its focus and manufacturing capability resulting in hiring at least 150 new workers. To achieve this vision, he needs $1.3 million and when he looks at the money that the federal government has handed out in bailouts, he wonders why more of it isn’t going to small business.
Here’s the simple math, if Mr. Maniscalo can really create 150 new jobs with $1.3 million, then with $30 billion, the amount given to General Motors and Chrysler, small business owners could create 346,154 new jobs compared to the zero net new jobs that GM and Chrysler have created with their bailout money. And most economists and analysts agree that there’s little chance that taxpayers will ever be repaid by the auto manufacturers even if they do survive.
So my question is why hasn’t the President Obama and congress provided TARP or economic recovery money directly to small businesses? Clearly, providing bailout money to banks, insurance companies and auto companies has done nothing to create new jobs or improve credit availability to small businesses. Recent NFIB surveys show that lack of credit is the number 1 or 2 top concern of most small business owners. And it’s been well documented that small business has historically been and will continue to be the economic engine of America.
Why not give small business owners a chance to create new jobs for Americans by making real recovery funding available directly from the SBA? One more government bailout program or czar might actually work this time!
