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President Barack Obama wants to help small businesses. Given his track record on economic policy so far, should small business owners be worried?
In an Oct. 19 speech, the president said many of the right things about small business. He spoke of "entrepreneurial pioneers" who "embody the spirit of possibility, the tireless work ethic and the simple hope for something better that lies at the heart of the American ideal." And he added that small businesses "have always formed the backbone of the American economy," and that "the success of our small businesses will be a foundation upon which our future prosperity is built."
Good stuff.
Too bad the policies the president is pushing either will not strengthen our economy's foundation, or actually would undermine it.
The president's focus now is on lending for small businesses by small financial institutions.
He noted that the government stimulus package signed into law in February reduced or eliminated fees on Small Business Administration-backed loans and boosted government guarantees on those loans up to 90 percent. Now he wants to increase the caps on SBA-backed loans. For example, under the SBA's...