S.20.3-15: Southern Small Business Administration Act (Law'd)

[Holy Unifying Centrist]

I would prefer more of this be in grants or some sort of direct payments as opposed to loans. I feel as if government loans can generally be pretty risky because of a lack of the government's incentive to underwrite risks. Just look at how much student loan debt has been accumulated because the government did not really underwrite those risks and is generous with how it gives out loans.

Also, many small businesses make far more than $100,000 dollars. $100,000 is nothing when you have multiple employees. That value should be significantly higher. I'm thinking at least $500,000, but probably more.

[Holy Unifying Centrist]

I would prefer more of this be in grants or some sort of direct payments as opposed to loans. I feel as if government loans can generally be pretty risky because of a lack of the government's incentive to underwrite risks. Just look at how much student loan debt has been accumulated because the government did not really underwrite those risks and is generous with how it gives out loans.

Also, many small businesses make far more than $100,000 dollars. $100,000 is nothing when you have multiple employees. That value should be significantly higher. I'm thinking at least $500,000, but probably more.

Grants are included in the text, both are options. I can’t speak for Tim, but personally I’d be good with an amendment raising the limit allowed for a grant/loan.

I know, but I would like loans to be limited in some fashion.

[Holy Unifying Centrist]

I support diptheriadan's amendment.

However, I will not be voting for this bill unless an amendment is passed that makes loans be severely limited. I do not think the government does a good job with loaning money because, as I said earlier, government's lack a direct incentive to appropriately underwrite the risk/chance of the private business not being able to pay the loan back. Government has a lack of "skin in the game" whenever it loans out money, so to speak.

I am not sure what a good restriction/guideline would be. Perhaps 75% of the money could be earmarked for grants, and 25% of the money could be earmarked for loans. But I don't necessarily think that particular restriction is good policy

[Holy Unifying Centrist]

Still not super happy with the overall bill, but it's a net positive

AYE