Want to create jobs? here are some ideas

These ideas / opinion are strictly to guide the current Political system to develop an EFFECTIVE financial policy that can jump start the US Economy.

• Small businesses like GAS STATIONS / CONVENIENT STORES / GIFT SHOPS / RESTAURANTS / AUTO REPAIR SHOPS and many more are the back bone of the US Economy.
• Many entrepreneurs and independent / small businesses have closed down their shops in these tough times, resulting in job losses.
• Jobs losses always create a ripple effect / chain reaction on the economy as the employees who losses their jobs cut down on their spending and so on.
• To bring these jobs back, it is important for these Entrepreneurs’ to survive
• We gave so much money to Big Banks & Big Corporations to bail them out – what is the result? The Banks are not lending at all.
• So instead of bailing out bigger companies – bail out small independent businesses.

How to Bail Out a Small Business?

• Any small business that is operational for AT LEAST 3 Years will be entitled to this bailout program.
• At the time of the application, this corporation will have to submit its 3 years tax returns, both Personal & Corporate
• They will be entitled up to 50% of their gross revenues as loan, upon the approval by IRS officials.
• This loan will be amortized over a period of 15 years with 1.5% interest.
• It will be IRS that will loan them the money so that they can keep a check on these businesses.
• IRS can cross check the tax returns with the revenues reported and can also monitor whether the bailout money is working or not.
• All the loans will be guaranteed, both by the Corporation and Personally, with appropriate collateral.
• It is a different form of giving tax credits where the government is not losing money and the tax credit money is being used to create jobs.

Why to Bail Out Small Business?

• 1^st and foremost, majority of job creations are always done by the small businesses.
• Secondly, this business was already operational for at least 3 years.
• For last 3 years, it employed individuals and paid taxes which eventually contributed to the economic growth.
• With the bailout money these businesses will develop new sites / locations and create more job opportunities.
• While building the new sites / locations, it will give jobs to construction workers too.
• Many Small businesses have closed down due to lack of such funds.
• Historically, the Small Business owners have always invested everything they have in developing their business.  They have risked all their life savings in developing their business.
• Any bailout money given to them will be re-invested, and IRS Field offices can monitor it.
• By charging 1.5% interest, the Government will make more money on interest then they are currently making by lending it to the Banks.
• Simultaneously the Small Business Owner will be relived from the hardships of dealing with a bank that is out there to charge lots of money in form of LOAN ORIGINATION FEES and HIGHER INTEREST RATES,

Public Works?

• It is argued that building trains and highways will create construction jobs. It is right.  But after it is built, what is the usage of this infrastructure – Hardly any.
• The infrastructure that is necessary for US, is already built.
• Any such job creation is a temporary fix, it is NOT a permanent solution.
• Maybe India & China need such infrastructure development, but we definitely do not need it.
• Infrastructure development in US was needed during the times of President Roosevelt, but not now.

This is just an insight from an entrepreneur’s mind.  Businesses owners like me are getting tired of being sidelined by bigger companies and banks.  We are tired of being sidelined by the political system.  We have the opportunities, the experience and the capabilities to grow.  Entrepreneurs like me have lots of things to offer in terms of ideas, opportunities and commitment as we belong to the Main Street and not the Wall Street. However we are being held hostage by the bad policies that the government is implementing.  Even though the intentions of the government are good, their means are not right.  They are not achieving their goals.

I would love to represent my ideas to any financial planner in the administration.  At the same time I am open for feedback on these ideas.

Respectfully Submitted,