Ironically, the administration is proposing a tax credit for companies hiring new employees. With credit markets nearly frozen, businesses large and small cannot access the credit they need to meet existing payroll demands — how are they to create additional jobs?

Roughly 99% of all firms are small businesses and employ half of all private sector workers.  If job creation is necessary for economic recovery, then small business is the engine driving us out of the doldrums.

Yet, small business has been especially hard hit by the economic melt-down, scrambling to get loans for expansion, day-to-day operations or just to survive.  Finding the banks with their wallets closed, they are often forced into risky financing maneuvers (high debt on credit cards, collateralizing personal assets, etc.) thereby lowering credit scores and making it even harder to qualify for affordable loans.

Despite efforts to stimulate the economy by creating jobs with one hand, the federal government continues keep the other hand heavy on big banks and has not earmarked any federal bailout money to lend back out.  Credit to small business continues to be choked off.

Credit is vital for small business success; small business is vital for our country’s success.

Until liquidity becomes more easily accessible via the banking industry, there are there are alternative liquidity solutions, such as accounts receivable financing, purchase order funding and other asset based loans to help companies survive, thrive and ultimately create new jobs for America’s long-awaited recovery.