As most people know, a large driver behind the current economic
recession was all the residential mortgages that banks were giving out
money to unqualified borrowers.

Once the You-Know-What hit the fan, people began pointing fingers at
mortgages brokers, bankers, lenders…basically anyone who was
originating loans. People were outraged. “They gave me a loan that I
could not afford!” they yelled “Banks are reckless, they knew I was
unqualified and set me up to fail!”.

Well folks, did you know that the Small Business Administation (i.e.
THE GOVERNMENT) offers the equivalent of sub-prime loans to small
businesses? And just like the sub-prime mess, SBA guaranteed loans are
now dropping like flies.

Here’s the worst part. Guess who is suffering due to all this
lending to unqualified business owners? The small business owners
themselves. People who put up cash, their homes, and offered their
personal guarantees are now facing bankruptcy or worse as their
businesses crumble. At a time when banks (ie prudent lenders) were
telling them no, the SBA (ie your government!) was inviting them to
borrower hundreds of thousands of dollars.

The SBA offers to guarantee debt in order to compel lenders to lend
to borrowers that they would not otherwise lend to. In other words, the
SBA promotes lending to unqualified buyers!

(Distressed Loan Advisors offer consulting services to small businesses, and can be reached at www.JasonTees.com)

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