Wednesday, August 19, 2009

Where's My Stimulus?

With so much effort being spent on re-building the banking industry, and pushing through a health care reform package, many small business owners around the country are feeling forgotten. CNNMoney.com posted a new article explaining the frustration of small business owners who are beginning to ask, “what about me?” I’ve included a snippet of their article below, but you can check out the full text at CNNMoney.com.

During her four years as an entrepreneur, Trina Nelson has seen plenty of ups and downs. But nothing prepared her for the crisis last December, when the American economy lay in tatters and her Dallas-based catering business nearly collapsed. "The phones stopped ringing," says the founder of Par-T-Trayz Catering (motto: "From sushi to soul food").

Unfortunately, Nelson, 38, has had a history of borrowing woes. In 2007 she needed a loan to stay afloat but was turned down by four banks because she didn't have an established line of credit. (Like many startup founders, Nelson had used personal credit cards to fund her business; now her credit rating is "shot.") Lenders said the amount she was seeking -- $15,000 -- was too small.

"They told me I wasn't asking for enough money," she recalls. "Why would I ask for more money than I needed?"

For the past nine months, Nelson has struggled to keep her business alive. Fortunately, her phones have started ringing again. But that's revealed another problem. "I'm turning down big business because I don't have the staff to execute the orders," she says. If Nelson had the capital, she would hire 10 full-time employees and expand to offer mail order and personal-chef services.

"The government is giving billions to companies that make billions, and they're still going out of business," she complains. "Why don't they give some of that money to small businesses?"