Small Business is the Answer to Jobs!

Dec 23, 2009

Historically, small businesses have led the way in creating new jobs after a recession. Congress and the White House need to do more to encourage small business growth to jump start employment.

Did you know that small businesses created 124 percent of the net new jobs in the three years after the 2001 recession, while large businesses actually cut jobs? And, the very small businesses with less than 20 employees created 107 percent of those jobs.

After the 1991 recession the numbers were 96 percent of net new jobs for the next 3 years for all small businesses; and 89 percent of the jobs for companies with less than 20 employees.

SBTC believes that Congress and the administration should provide improved access to capital for these smaller companies to help jump-start our economy. We keep hearing from our members that banks are not lending money to our smaller members. We believe that this is partly caused by the extremely weak balance sheets of most banks and their unwillingness to extend credit to very small business for fear of running afoul of bank regulators.

If you are having this problem, let your Members of Congress know and send us an email with your story so we can collect the data for submission to Congress and the Administration. For more information, check the SBTC web site.