Local Businesses Finding No Help From US Recovery Plan
posted 07/14/09
6:25 pm
Stay on top of breaking news!
Sign up for ABC News 4 e-mail alerts.
James Island, SC -
Small businesses are finding no help from the American recovery plan. Locally, many small business owners say there is little help from the 787 billion dollar stimulus plan.
The stimulus is designed to make loans affordable and available to small business and that's what happened, but local owners say there are no banks willing to take a chance.
Her quest for the perfect chocolate chip cookie led Judith Moore to start her own business six years ago. In that time, The Charleston Cookie Company grew beyond her expectations, thanks to a mix of the right business ingredients.
“I’m the kind of person who is a risk taker. There is always someone out there trying to sell something and that’s what we all do, but the trick is to learn when to say no,” said Moore.
But her sweet success fell on hard times as the economy took a nose dive. Missing from this recipe is help from the federal stimulus plan, including business loans aimed at people just like Moore.
“For one thing, there are no bankers in Charleston making SBA loans, which is what would be available for someone like me,” said Moore.
Moore works closely with SCORE, a group of executives who volunteer their time to help small business. Charles Williams is with SCORE. He says the stimulus plan isn't working because lenders won't loan money in this tight credit market.
“In order for those programs to be successful, you need banks to lend to the small businesses that need it, and there is very little participation in this state for those programs,” said Williams.
Charleston Cookie Company changed its business model, moving to a more wholesale market to cover any loses in local sales. Moore says the outlook is improving, but her advice for potential new business owners, don't quit your day job just yet.
The stimulus package does offer energy tax breaks to small business and Moore says that is something she will pursue down the road. The Obama administration is discussing using some money from the bank bail-out to help small business, but White House officials say the idea is still in its early stages.
Email To Friend 
© 2009 WCIV-TV, LLC.
The Associated Press may have contributed to this article.
All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
ABC News 4 to leave comments on news stories.