I always think it’s funny when our politicians tell us that they are working to help small businesses. Every time I hear a politician in one of the districts where I am say such things to me, I immediately challenge him and ask; “Exactly what has he done to help small businesses in this district.” They talk about things like preparing loans for small businesses, about collaborative projects with companies to create jobs. I just shake my head and laugh, it’s like they don’t get it.

You see, funneling taxpayer money into special pet projects with small business owners who happen to be friends with politicians and also dutifully support their campaign war chest for re-election doesn’t seem to me like it’s helping local businessmen much, more either he is helping the same politician or he feeds at the trough. Second, offering more business loans to small businesses at the bottom or top of the business cycle only puts local entrepreneurs in debt. Meanwhile, our politicians award lucrative contracts to big business and corporations; corporate wellness.

There was an interesting article in the Wall Street Journal on March 20, 2014 titled; Loans are flowing again, but not in all sectors,” by Julie Bennett, featured in the Spotlight on Franchise section. One franchisor was quoted as saying, “You can’t grow a franchise business without the SBA,” and Whereas, this may be somewhat grounded in reality, which begs the question why.

Now as a former franchisor or I would like to say; “To hell you can’t.” You see, I have franchised my business and can only recall a few SBA loans from all the franchises we have sold. Those SBA loans were difficult to obtain, time-consuming, with too many stipulations, and the paperwork was a nightmare. When I entered a new territory or region, I wanted to sell the franchises quickly in order to dominate the area and grow our market share as quickly as possible and build awareness of our brand. I didn’t have time to wait to do the paperwork or help a franchise buyer get SBA-guaranteed financing, which could take 60-90 days.

I wanted those businesses up and running within 60-90 days, but we couldn’t even sign the franchise agreement until they had the money available, but the SBA stopped the process altogether. Worse yet, the Small Business Administration wanted all sorts of paperwork, business plans, and other information that they weren’t willing to divulge to a new franchise buyer until they were sure they were qualified, but they’re not qualified until they have the money. but they can’t get the money unless you disclose information to the SBA.

To add insult to injury, if I disclosed the information to the SBA, they wanted to put those business plans online, on their website for other future franchise buyers, unfortunately that information would also be available to my competition.

Therefore, I conclude that the SBA never helped me in my business, and yes, “I built my business and did not receive much help from the government, thank you very much.” Please consider all this and think about it.