CNN iReport

  With the US Government on the brink of giving the Big 3 Automakers a huge economic bail out, I can't help but think of the hard math and how a similar package for small business could be just as effective or even better.  I agree that if the Big 3 can actually show how the money will be spent and are dedicated to 1) creating a long term competitive business model, and 2) preserving or creating new jobs in the US.  Why can't a similar package be offered to small business fitting the same criteria?

  Here's the hard math I spoke of.  The Big 3 are getting $25 billion.  They are asking for an additional $25 billion for a total of $50 billion.  They claim this will save 2.5 million jobs.  Breaking these figures down to simple per unit costs that is $20,000 per employee. 

A juice bar in California that employs 6 people could use $100,000 to keep its doors open at a cost of $16,667 per employee.  Sales at this juice bar are growing.  It is a strong supporter of the community and local school athletic programs.  They even have a program to teach nutrition to children in grade school.  However it it may close because tight credit markets threaten to cut off its financing.  Why is there no talk about helping a small business like this?  It's just as economically feasible if not more than the bail out for the auto industry.

I myself have a small publishing company that was looking for a 3 year $3 million investment just as the markets crashed.  The expansion would have employed around 25 people directly and because we outsource our printing and the volume at which we planned to expand, an additional 10-15 employees at our printers, and up to 50 freelancers to help us develop our books.  That;s $33,333 per job created (maybe 5 or 6 of them in Canada the rest of them in the US) spread over 3 years of the investment period for $11,111 per employee.  All of them new, good paying jobs.  The model has a great 3 year return and things looked very good until the markets failed and investors became hesitant to spend money because of a volatile Wall Street.

Since the market crash we have scaled back our plans to a one year $500,000 investment that will only directly employ 10 people, 3 freelancers, and maybe 4 at our printers.  At a cost of $29,412 per job created.  It's not as good as the larger investment but its more realistic in this market.  The worst part is that the programs that were cut where programs like our children's literacy project and supporting local school art programs.  The literacy initiative was going to supply comics designed by professional educators to teach reading skills, targeted at 3-12 year olds to school libraries and Head Start programs. 

   These are only examples I know of directly that would benefit greatly from a stimulus package for small business.  I am sure there are thousands more across the country.  Public works projects will only go so far in creating jobs. When those projects are done where do the people go for work?  Small Business.  We need to strengthen small businesses soon.

  If anyone in charge is reading this, consider creating a small business stimulus plan for small businesses that meet these criteria: 1)  Present a solid business plan explaining how money will be spent, earned, and repaid, 2) create or preserve new jobs in the US, and 3) give bonus points for companies with plans that help bolster the community, education, or for business plans that expand green technologies.  Save small business, save the world.