Plan gives small business owners hope

March 16, 2009 11:43:33 AM PDT
In the Bay Area, small business owners are watching to see how much of a difference the president's new plan will make for them.

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At the Castro Cheesery on Castro near Market - store owner Ken Khoury is preparing to grind some beans and at the same time grinding his teeth over concerns of about his store's future. The president's plan to help small business is much appreciated.

"Banks will be more accessible and we will get help from banks when we need a line of credit for our business - so that we can new equipment and get other new stuff," said Ken Khoury, owner of Castro Cheesery.

Ken knows it's not just his business that could use an infusion of money.

"This might be something that is helpful for the small business community, because everyone -- as you know -- is struggling these days," said Khoury.

At Golden Gate University Business School, Dean Terry Connelly says statistics show that seven in ten jobs in America are created by small business.

"These are businesses that you don't find on the Nasdaq or the Dow Jones, as compared with some of the great destroyers of value - with today's example that you see with AIG, which is just one of many. Small businesses are great creators of value," said Connelly.

Connelly says the government's purchase of $15 billion in small business loans will prime the pump for new lending and therefore new jobs.

"Scores of thousands of individuals are looking at ways that they can start their own business and not be dependent on the whims of the Dow Jones and the broader economy," said Connelly.

A new survey from the Small Business Administration of California shows that the number four concern of small business owners is lack of credit. Hopefully what the president did will push that concern down.

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