Small Businesses Under Duress

In their April 12 earnings release, J.P. Morgan warned about the economy and the impact on small business.  Jamie Dimon, Chairman & CEO, said:Unknown

“Small businesses remain cautious about the recovery and fiscal uncertainty, and are not investing their capital. However, companies’ balance sheets are much stronger than they were before the financial crisis and small businesses remain well positioned to invest in growth once they decide to.”

Further, small businesses do not have access to capital.  Loan originations to small businesses dropped 20% from the prior year.  This dampens business investment and expansion and further diminishes job creation.  While some pundits believe the economy is doing fine, most small businesses would disagree.  Policy makers in Washington would do well to get out now and then and talk to the job creators who are trying to deal with the world being crafted by new regulations, taxing schemes, health care rules, etc. Perhaps if they did, they would stop implementing the job-destroying policies.

— Steve Odland

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