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Small Business Lending: Why the Programs Need to Change

[My solution, which would be really radical, especially for Harvard and Wharton grads to swallow, would be to just eliminate the MIDDLE MAN, which are in this case "banks" or any entity that sets itself up in the middle skimming profits between government and entrepreneurs. ]

While it's popular to bash the evil middleman who "skims profits," most systems NEED middlemen in order to function effectively.

One of the fundamental flaws in government-run programs is that they try to eliminate middlemen, so decisions that would best be made in the field or on the ground are made by someone who's completely out of touch. The main criticism in this article more or less proves the point.

Like you, I used to be enamored by the idea of government "partnering" with business.

Now that I've seen how it works, a la Goldman Sachs and GE, I now realize that the only "partnering" that takes place is with the well-connected.

In addition, I have not one example of something that the federal government does well, other than obfuscate, confuse, major in minors, and expense magnification.

The less the federal government does, the better.

And yes, that includes small business lending.