Starbucks Create Jobs for USA Program
Howard Schultz, CEO of Starbucks, will launch a “Create Jobs for USA” program that asks the American public to donate $5 at any of its stores for small businesses. A Pepperdine poll showed that less than 50% of small businesses obtained loans from lending institutions . This lack of credit results in less jobs being created and decreased manufacturing output. It is hoped that this initiative by Schultz will prod stakeholders to address this problem, the Huffington Post reports.
Today, Starbucks CEO Howard Schultz will launch “Create Jobs for USA,” a program where a $5 donation at any Starbucks will provide $35 in financing for small businesses. This is real money that will be loaned to small businesses to create real jobs — something our economy desperately needs right now.
Schultz knows our economic recovery depends onsuccess. His program asks the American public to stand behind his efforts to remind lawmakers of the unique potential holds. With someone this high profile taking action to put small employers back on the hiring track, hopefully the problems small businesses have accessing credit will get some much needed attention. Schultz’s work should be applauded, and imitated. We hope leaders of all stripes are listening to what he is saying: small businesses can’t get credit.
Small employers are struggling; lack of demand and weak sales are part of it, but one of the key barriers to their success — hindering their ability to help remedy the economy’s malaise — is the inaccessibility of credit.
A recent Pepperdine poll found just 44.5 percent ofowners who sought loans in the past year were able to obtain them. What’s more, 34.8 percent of respondents agree that of all the policies with potential to create jobs in 2012, increased access to credit is the most likely to do so.
Most of the time, it’s not large million-dollar loans we’re talking about.owners with stellar credit and long-standing businesses can’t secure small loans to help them hire the extra person they need to keep up with demand, or manufacture that next batch of inventory.
Small businesses need room for growth.
With all that said, Congress has worked to give small businesses a hand when it comes to accessing credit. Lawmakers passed the Small Business Jobs and Credit Act last year, which included a $30 billion lending program to help small businesses get credit. Unfortunately, the lending fund wasn’t able to allocate the majority of its funds, and many small businesses continue to struggle.
Fresh lending policies and programs like Howard Schultz’s are crucial. It will put much-needed cash in the hands of America’s small businesses so they can grow and hire, creating new consumers, which will further stimulate the economy. And with the public awareness the fund aims to generate, small business lending should become a greater priority for lawmakers as they work to pass a jobs plan. The 14 million unemployed Americans, the countless struggling small businesses and our floundering economy need the help, and they need it now.
To help keep small businesses aware of the loan options that are available, Small Business Majority is working to educate entrepreneurs about the various programs and resources in the credit arena.
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