Big Things Are Happening in Cleveland: Turning the Rust Belt into the Tech Belt

President Barack Obama answered questions during a small business panel discussion in Cleveland, OH recently where he said financing small businesses will be the way to get America working again. Small businesses create two of every three new jobs, the president said.

Manufacturing cities and steel cities like Cleveland are looking to reinvent because of the decline in manufacturing jobs.

"Small businesses are going to make the biggest impact on regions like this," the president told a panel of small business owners and entrepreneurs Tuesday February, 22. The event was streamed live on the Internet at Whitehouse.gov.

This is a further appeal to the business community to aid American job growth. The president in February addressed the U.S. Chamber of Commerce to ask big business to utilize the approximate $2 trillion "sitting on the ledger books," to create jobs for the struggling unemployed to aid economic growth to no obvious avail.

Now, the president is addressing small businessmen and women in an attempt generate jobs for the country's unemployed.

The breakout sessions focused on five areas: entrepreneurship and how to grow an idea into a company; capital and how to increase its access; workforce development and training; exports and focusing on removing obstacles to the global market and clean energy in a 21st century economy.

The afternoon panel discussion fielded questions from Internet users. James P. of Addison, TX asked about small business loans. He said since local banking holding out on small business loans, it has been hard to find a bank loan for anything other than fixed assets. He said working capital, speculative funding and entrepreneurs have to start or keep their business running through saved capital, family, friends or customers. He said traditional funding sources only help rational forms of business and innovators must look elsewhere.

The president said the Small Business Association has eliminated loan fees and limits on SBA loans. Also, the treasury department provides funding for small businesses. The president mentioned the idea of offering tax credits for angel investors and said there was positive congressional chatter about such a bill.

On a question about retraining, the president said certain regions are gaining expertise in particular industries like biotechnology or advanced battery manufacturing.

"If we can get businesses to partner with local colleges and universities and help to design the training process for the jobs that exist already, it is win-win. Workforce training costs are absorbed and students know they will have a job at the end of the day--if they go through the training process," the president responded.

These programs are underway, the president said. Employment offices all over the country are configuring programs like these. He also said there is increased access to student loans which expands access to higher learning. Also, by honing in on training programs that lead to an entry into the workforce, students are not borrowing money and matriculating through college only to find no work in their field of study.

Mentoring is also an issue for entrepreneurs. Start Up America is a mentoring program initiated by the president which help network small business owners and entrepreneurs by utilizing the knowledge and experience of mature business owners who will guide participants through the world of business processes.

Source:
Remarks by the President to the U.S. Chamber of Commerce Imadeamesss.com
"Winning the Future Forum on Small Business: Opening Session" The White House
"President Obama Drops By Opening Session on Small Business" The White House
"Online Forum on Small Business: President Obama on Loans" The White House
"Online Forum on Small Business: President Obama on Jobs of the Future" The White House
"Online Forum on Small Business: President Obama on Mentorship and Opportunities" The White House