Interesting....
The San Francisco Examiner
sfexaminer.com
By: Tad DeHaven - Special to the Examiner
08/18/2011
Washington continues to entrust stale bureaucracies with the job of righting the economic ship, instead of getting the federal government out of the way. One of those bureaucracies is the Small Business Administration, which has been employed by Congress and President Barack Obama to reignite private-sector lending.
The SBA does this by guaranteeing loans issued by private lenders for up to 85 percent of losses in the event that loan recipients default. As a result of the guarantee, lenders are more willing to lend money to riskier applicants because the SBA - and thus taxpayers - is ultimately responsible for the bulk of any losses.
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