Here's My Plan To Create Jobs and Fund Small Businesses
It's small businesses that create the majority of new jobs. As an entrepreneur for over fifty years I can tell you first hand, what small businesses need is not tax deductions but the availability of capital. Try being an entrepreneur today and you’ll quickly realize how difficult it is to fund a startup business today.
As your next Senator I will introduce a bill that would make capital available to existing small businesses and new startups.
The plan is simple; the government makes available a savings bond (ie., USA BizBonds). These bonds would be available for purchase by consumers in different denominations and available at any FDIC bank or other financial institution. Each bond would yield a reasonable rate of return preset for a period of 5 – 10 years.
The business would be able to borrow up to $50,000 (line of credit) for each new job created. The interest rate paid by the borrower would be fixed at a rate somewhat higher than that paid by the bondholder.
The overall approval process would not be based on one’s personal credit history nor would it be dischargeable in bankruptcy.
Savings bonds in the U.S. have had a long history, starting with Series A-D bonds, offered during the depression to give people an incentive to save safely. President Roosevelt used Series E bonds as a way of funding World War II. During the war years between 1941 and 1945, more than $33 billion worth were sold to the public, in face amounts as low as $25, and as high as $10,000.
The program would be administered by FDIC banks (for a set fee). The bottom line is the business gets the needed funding, jobs are created, the government receives additional revenue through interest paid by the borrowers and subsequent taxes paid by the business and its employees. “It’s a win-win for the government, the business, the employees and society.” ~ Barry Michaels