It'll all be better when we get our first trillion Mo'BamaBucks
And our Majik Unicorn!
Posted on 12/22/2009 7:09:17 PM PST by NormsRevenge
The Obama administration's new plan to give a boost to small businesses reflects continued trouble in that sector, which is facing new failures even as much of the nation's economy is stabilizing.
As credit lines have shrunk and consumers have cut back on spending, thousands of small businesses have closed their doors over the last year. The plight of struggling firms has been aggravated by the reluctance of banks to lend money, said Brian Headd, an economist at the Small Business Administration's office of advocacy.
"While bankruptcies are up, overall, small-business closures are up even more," Headd said.
California has been particularly hard hit. The latest data show small-business bankruptcies up 81% in the state for the 12 months ended Sept. 30, compared with the previous year. Filings nationwide were up 44%, according to the credit analysis firm Equifax Inc.
The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business.
Dennis McGoldrick, a bankruptcy lawyer in Torrance, said his clients are all stuck in similar situations -- capital is hard to come by, customers are tough to attract and debt is piling up.
"We can't keep up," McGoldrick said. "There's more people that want to come in every day than I can see."
Cecily McAlpine, who filed for bankruptcy protection for her Cold Stone Creamery franchise this spring, said the experience was humiliating but she had no choice.
Receipts at the fledgling Compton ice cream shop plunged dramatically during the recession, and by late 2008 she was paying her employees out of her pocket.
"When the refrigerator died, that was it; I'd just had it," McAlpine said. "That was the day I broke. I just started throwing stuff away."
(Excerpt) Read more at latimes.com ...
FRom the Home State of FR
Where the debtload is the new Mother Lode
And It’s Business As Usual in StinkyMento
For Unions, Lawyers, and Illegals.
Where more businesses have failed
Due to state neglect and abuse
Than across most of the nation.
Merry Christmas from a Socialist Utopia!
The present administration could give a boost to small business, but what does that achieve if the prospective customers do not have cash? The boost thing is @ss backward, but it may be too late to fix the damage that has already been done.
The wall street bankers are doing great!!! LOL
The Chitown mafia just do not get. And of course neither does Ahnold.
The Chitown mafia just do not get. And of course neither does Ahnold.
Haven’t they heard, the recession is over. Besides, CA is going green. There will be millions of new jobs. The air will be clean and life will be wonderful.
Norm, thanks for doing a super job on this excerpt.
One and two sentence excerpts by lazy, drive-by FReepers is getting tiresome.
CA. small business needs city, county, state and federal governments to just disappear for a while. It’s the endless codes, ordinances and other regulations, not just lack of capital, that prevents California from recovering
There aren’t enough wall street bankers to protect obama from the pitchforks heading his way.
No problem.
I usually rip&post all I can squeeze out of the FR engine.
There are more “for rent/lease” sign up on commercial properties in SD CA than I have ever seen. A friend who is a developer of a new premier commercial site is hanging on by his finger tips and the project is doing well by any measure. Give it a year more of this and CA will be in deep guacamole.
Hey - no problem - the terminator is going to give lots of gubmint work and pay them with IOU’s
The lesson to be learned from this is that a business should never borrow money. Start small and cash flow all your expenses. If you don’t realize a profit right away, so be it. If you need to borrow money to do a deal, don’t do the deal. Rent any buildings until you can pay cash for them and have an emergency fund.
The coastal commission, water quality board, the local entities and the all-anti crowd continue to suck the life out of the remaining businesses in Eureka.
This is what the Socialists, in CA and the White House want: to destroy the middle class and make way for the crony-fascist big business boys.
Well, don’t forget the Schwartzenegger Sierra-Nevada CONservancy that fully occupies the entire other side of CA, right?
It'll all be better when we get our first trillion Mo'BamaBucks
And our Majik Unicorn!
Not good. Texas is still holding it’s head above water, but I don’t know for how much long.
New year may bring new things but right now we are fresh out of hope and the gubmint is taking all the change.
long = longer
Need more coffee.
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