US government gives big money to big companies and has no money for SMBs

U.S. small businesses, representing 99.7 % of all U.S. employer firms, say they feel slighted by the Obama administration and efforts to shore up the economy, with large companies taking much of the government's attention and stimulus cash. The government decision last week against bailing out small business lender CIT Group raised fears of thousands of companies left without funding for day-to-day operations, and the lack of support showed big corporations can get bailout cash but small business’ interests are less pressing.

$730 million going to the U.S. Small Business Administration to recharge the small business lending market didn't really help the small business owners. Some say the package was not well structured and dwarfed by the $180 billion the government committed to save insurer American International Group.

Melody Barnes, a domestic policy advisor at the White House, said in an interview with Reuters Television that the Obama administration wants small businesses to come out ahead in the reform effort. Nevertheless, some say that applying for a small business loan can be more trouble than it's worth.

Where small businesses may benefit is in healthcare reform being considered in the House of Representatives, specifically a proposed insurance exchange through which businesses and individuals could shop for policies. In the proposed insurance exchange, businesses with 10 or fewer employees would have access in the first year. That would broaden to businesses with up to 20 workers in the second year, with a promise larger employers would gain access over time.

However, those restrictions, plus mandates forcing businesses to provide health insurance or pay an 8 % payroll fee make some small companies angry. They say the mandates would drive firms out of businesses.