Business Loans for Poor Credit Applicants in California

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California is no different that any other part of the country when it comes to the struggling economy. In fact, if one considers the price of gas in the state as well as some other overpriced necessities California might be worse off than many of the other states. The increasing costs of many products is affecting our local small business owners and the businesses they operate. The election is coming and it has to be established which candidate is going to help small business.
 
It is obvious that business loans are what is needed considering the financial mess most business owners find themselves in. Up until this point it seems that no candidate has outlined how they are going to help our local businesses. In a recent article on small business loans and the candidates the common theme is that neither candidate has outlined exactly how they intend to provide business loans for local small businesses.
 
It is a serious government issue because many of the local business owners are victimes in this derailed economy and are suffering from bad credit. Not one single bank is willing to provide a business loan unless the applicant has excellent credit. Considering the state of banks and their position on this type of lending the candidates need to find another resource for small business loans and outline a plan for how it will work.
 
An excellent proposal that has been coming up in several suggested ideas is to provide incentives for private lenders to expand there existing lending programs. For example, bad credit business loans which generally have lower approval rates need to be incentivized for the lender by government programs or support. Many of our local business owners are good managers and have had to make decisions to not pay some creditors as a means of keeping their business afloat. The economy is the main contributor to the struggling local businesses and providing business loans from additional private resources is a way to stimulate the economy and at the same time help small businesses.
 
The candidates need to outline a plan that allows private lenders to provide business loans for small business owners even if they have bad credit. The government can support the program with financial incentives for the lenders, especially considering how banks are simply not reliable enough to provide this type of lending. This type of plan will help improve the overall financial position of San Fransisco, the sate of California, and even the rest of the country.

Paid for by Phil Ting for Assembly 2012. FPPC ID# 1343137