New Fisher Study Shows Mom and Pop Shops Struggle to Get Loans While Wall Street Doles Out Billions in Bonuses
Columbus' Business Owners Saw a 46% Drop since 2006
Fisher Says, "Wall Street is Giving Ohio Small Businesses the Back of its Hand."
Columbus – A new study shows that Ohio's small businesses are struggling to access basic lines of credit while Wall Street is doling out billions in bonuses. The new analysis, released today by U.S. Senate candidate Lee Fisher reveals that loans to Columbus’ mom and pop shops have dropped more than $25 million since 2006 – a 46% drop during that time period.
The clear picture of Ohio's struggling economy comes as bailed out corporations such as AIG dole out $100 million bonuses and investment banks use of private jets to fly to Swiss resorts.
The Fisher study finds that between 2006 and 2009:
- Columbus business owners saw federally-guaranteed loans drop from $56 million in 2006 to $30 million last year
- The total amount of loans to businesses across Ohio has dropped nearly 34% since 2006 – from $604 million in 2006 to $400 million in 2009
- In 2006, Ohio’s 204,000 small businesses employed nearly 49% of its private workforce.
Lee Fisher said, "Wall Street is giving Ohio businesses the back of its hand, not the support they need to create jobs. It's time we hold Wall Street accountable and get back to creating good-paying jobs on Main Street."
The Fisher Plan
- Creating 5 million jobs nationwide over two years with a new job creation tax credit. The tax credit would incentivize businesses large and small to hire new workers, not export jobs overseas
- Encourage banks to get loans out the door to responsible small business owners and cut red tape holding back local entrepreneurs
- Boost transparency and accountability on Wall Street to ensure that this global economic mess never happens again
Fisher's campaign reviewed the loans guaranteed by the Federal Small Business Administration between 2006 and 2009. The loans, referred to as SBA 7(a) and 504 loans, are provided by private banks to responsible small businesses, but are backed by the federal government. Businesses use the loans to cover start up costs, invest in new technology and equipment, and create new jobs.