Small Business Association Opens!
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by Small Business Association
Hello UK!
Today, is a great day. The Congressional Elections are showing a great turn-out (according to the vote tally at the bottom, we're over 300 votes). Those who are being elected are all active people chosen by their party leaders.
However, that is not the purpose of this article (as shown by the title). For some of those who are on the forums regularly, you might recognize the name of this Organization. You might not know what it does, but you hopefully have at least heard of it.
Here's some quick history:
November 3r😛
Dishmcds brings the idea of a new Governmental Organisation to the forefront of the House of Commons. It's purpose would be to "aide companies during struggling times of economic recess in the UK, through the use of no interest GBP loans to ensure employment can be retained for UK citizens."
It received a small bit of attention from fellow Congress members, but not much.
November 8th: Dishmcds puts the proposal to a vote.
November 10th: The vote closes, passing 13-1-1.
Here is the Proposal which passed on that day:
Procedure: Run as an intermediary between the Department of Work and GM's on the whole, the Director of the SBA (appointed by the President, no cabinet duties) would oversee the management of this program. It woul
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1. Require GM's to sign a contract for each loan. This contract would include the following:
a. Price Floors for each industry
b. Quantity limits, not to be broken, selling in small quantities to allow all companies to get a small slice
c. Extensions on loans: Should the recess last for longer than expected, the SBA can extend the loan as they see fit, so long as the MoW and President agree to it
d. Once the loan is repaid, the GM is then free and clear to do with their companies as they see fit. If they default, then their company becomes property of the UK Government (collateral) until the GBP loan is paid and the company is returned to it's original owner. If a loan is defaulted on, the recipient is no longer eligible for a loan in the future.
2. Give GM's some relief on salary, to continue employment for each person they employ. A GM that receives a loan from the SBA is required to carry only the maximum number of employees. If it does not carry the max number, it's required to offer employment up to the maximum productivity number.
3. Relieve pressure on Government Ministries for running these companies, as well as cost. Running Government owned companies would cost around a minimum of 13,500 GBP per week just to maintain salaries, and that's without setting products for sale. This would allow small amounts of sales to be made by the company as non_Government products (keeping us free market advocates happy) while maintaining that each GM that is in this program maintains certain standards (keeping the left happy).
4. A request for funds is to be made for the SBA in conjuction with the MoW, SBA Director, and President and to be carried out by the BoE.
I'm pleased to say, today we open for business. Yesterday afternoon, we finally received our funding from the Bank of England, so we will finally be able to commence with the original plan. Thanks to President Dishmcds, this became a reality. So I want to thank him for proposing the idea.
For those of you who are hoping to have help with the issues mentioned above, make sure to contact us (The Small Business Association) so that we know you need us.
You may ask, who exactly is working on this project? Prime Minister Dishmcds decided to contact two people that he thinks are up to the job, and that will give it their best attention. He believes that we will maintain fairness in all of our contracts, but also be strict should the "client" require too many extensions. I'm proud to announce that I, Deathtoll32, and Dnouser will be the directors of the brand new Small Business Association.
EDIT: When requesting a loan from the Small Business Association, please include the following information in message.
A. Company Name and Industry
B. Amount Requested
C. Reason for Loan
D. (requested) Term of Loan
Thanks for listening UK!
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Comments
I wish you the best of luck.
Good idea. I posted a comment earlier about small buinesses needing more aid, I think it will encourage more people to become involved in buisness invoking buisness rivalries and more workers 🙂 GL
Would this be open to UK companies overseas ?
Well we're mostly about helping Employers pay for employees and what-not.
At the moment we only have GBP. Whether we expand into foreign currencies is a decision that we, along with the Prime Minister and MoW, must discuss. However, at this moment we will only be carrying GBP.
We're glad to see this being implemented - a similar scheme is part of the Movement for Democratic Unity Party Manifesto however lets be clear about this
- How much funding is the Small Business Association getting?
- Will companies who were in difficulty before a financial crisis/period of market turbulence also receive the non-interest loan - is this scheme basically open to propping up failing companies under the premise that there are market problems?
We strongly believe that setting up an organization to advise on the actual setting up of a business, and planning for a business in the first place would help a lot of young companies get off their feet more easily.
We'll be interested to see how this works out - the actual idea has our full support, its the wording of the terms we want clarifying. Companies may be struggling before market problems, and then basically get bailed out thanks to market problems. Its obviously extremely difficult to police - we shouldn't be propping up failing companies as this is unhealthy for the economy in the long term and is basically controlling the market, something the MDU is strongly against.
The best of luck in your venture, as its one that the MDU had similar ideas for if we can help at all, if theres a workload that needs sharing please contact Tommy Tommmasino.
T.Tommasino, MDU Press Liason & Membership Officer
1. At the moment we have 750 GBP. There is also a proposal up in Congress to give us another 100 GOLD.
2. It really depends on Dnouser and My opinions. We will take many things into consideration when people ask for a loan. We have to remember that this is government money, and that we would like to receive all money back. For this reason, some people might have trouble taking out a loan.
3. Yes and No. We are mainly going to be used for companies that need occasional boost for salaries. However, I would not consider the companies we help "failing". The problem with helping a failing company is that our loan will most likely be lost. Helping a company that just needs a quick boost is much different. We are doing this so that company owners can relax more, but we don't want to end up losing money.
I actually wanted to add this: For people asking to take out a loan, please include the following:
a. Company Name
b. Amount Requesting
c. Reason for Loan
d. (requested) Term for Repayment
i agree with the MDU you sholud help small businesses with advice first as when i setup a company which i want to then i wont know where to start. a guide would be good.
@Benedict: I wrote one some six months ago 🙂
All you have to do is ask and I can revamp it to consider the V1 changes and whatnot.
@dishmcds
that would be great, i dint know that there was a guide im really new to this thanks.
I actually hadnt published the business guide yet, as it need updating...
Dish, with the markets being a constantly changing living being pretty much, a static guide is no good. We need a constant presence, a contact point for those wishing for advice. yes there are the forums, and yes many congressmen, etc, and you yourself are extremely approachable to ask for advice, but rather than simply pump government money, surely the best way would be to try and prevent companies coming into difficulty in the first place through simply advising.
I'm not of course disagreeing with the idea of the Small Business Organization - i thinks its highly necessary. I just think it seems too focused on the loan aspect. Yes the markets can be turbulent and many small companies, even those owned by those who know what they are doing could fall foul... but I strongly believe with a push in the right direction (not interference! advice..) as companies set upon the road in the first place, a lot of problems later on could be avoided.
Guides can only do so much, they can't prepare for the changing markets.
Saying this, I'm overall extremely glad to see the Small Business Organization take form - it was an excellent proposal by an excellent president. I just think it needs refining a bit. We can go onwards and upwards from here and expand it. I myself would be willing to help out if extra hands are needed.
um like wise i might be knew to this but im always full of ideas and would gladly help what with having a good imgination and that.
Any business is a risk, and should be looked at as such. I, you, or anyone else can try and "teach" someone how to be successful but some will and some wont. Thats an unfortunate truth.
The SBA is meant to be used as a way to keep businesses who were in a crunch due to hard times (see: halting of war mod, under or over production, value of the pound for most of October) to keep employing people (which is our main problem due to the boom in population above 4K along with the max number of employees in the productivity equation). Our problem isnt "teaching people" how to run a company, which is rather easy, technically. It's recognising costs of running a business versus market availability/need, and keeping people employed.
So, tl;dr we can't "hold their hand" so to speak. Having an advisor on call 24 hours a day to give someone advice on what prices to sell their products at is rather unnecessary considering it's determined by the market anyway. A guide would recommen😛
1. How many employees a company should keep and why
2. Pro's vs Con's to cost vs value
3. Actually running the company
4. Raw Materials and how it affects the company.
From there, it's a GM's decision to either enter the market or not enter the market, and therefore if they're successful then it's of their own doing. If they're not, it's also of their own doing.
its not about having an advisor on call 24 hours a day, its about a fairly new player wanting to set up a business, and not knowing which area might be in demand, which area might already be overloaded etc.
This is protection of the free market in itself. Free market relies on supply/demand, and letting people know which areas are oversupplied/undersupplied supports this.
If i'm proposing holding their hand, then giving them interest free loans without trying to sort out the base issues in the first place is going one step further and giving them a piggy-back.
Obviously many entrepreneurs are giving their views here. As a person not owning a company, I would like to speak out for the tax payer. Like Dish said, companies, like any business, are a risk. Why should the government give free money away at 0% interest? I think at least a small percentage should be paid back when the business sorts itself out, even if it is only 1%. Otherwise, by supporting failing companies and risking public money, the Government is just making it harder for new companies to appear and flourish. Besides,the interest could be used to help improve the NHS- ordinary citizens would welcome being cared for by the NHS up to, say, 98% wellness rather than being dropped at 95%. We pay taxes too!
First, don't say that you are speaking for the "tax payers" since you are not. You are speak for yourself who is a tax payer because I believe not all tax payers will agree with you. (which is me.)
Second, citizens are a risk too. So why do NHS bother to gift them if some citizens may never log in again. Because that what the Govt. do. They trying to do the greater good for the country with the less possible risk. SBA is trying to help companies, which will help our economy at least possible risk.
Third, it been stated, yes, companies are risk, but what isn't. However, it been stated also, that SBA will review companies before handing out loans. So they will have the greatest chance gaining the "public money" back while helping out a companies, which in turn will help our economy. With the productive formula as it is, new companies shouldn't have a hard time and if they are SBA is there to help them also.
Fourth, there is no need for 1%, it will only deter businesses from seeking help from SBA or may increases the chances of a business defaulting on a loan.
Last, I feel like you only state "improved NHS" part because you don't feel like buying higher quality food to help keep your wellness up. Anyway, increasing the wellness cap is a waste of money and it hurts the economy since it will only lower the demand for the higher quality food. Anyway, voice your ideas and opinions through on eUK's forum, if you really feel govt is properly using the "public's money". http:/[..]/
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Just to add, these are my views, Keitarour's views alone.
The NHS is in an awful state, i contacted local NHS and haven't heard back - i've never heard from the NHS since arriving in eUK. And i'm not just a few days old either.
Its all very well saying the SBA will 'review' companies. But what does that actually mean? You've said if they dont have enough staff you'll make them put out job offers, so what companies exactly will not qualify?
The whole thing is very vague.
Tommy... Just like when any idea is formed and brought to reality, it is impossible to say how it will work out. Right now, we have the instructions listed above in the Proposal, and we are intended to follow those. It is our privilege to interpret how this is meant to be run.
As I said, we're brand new to this scheme/idea/plan, so we're going to have to do a Test Run of things. Since we are the first to direct the show here at SBA, we need to write the system that works best for finding the right companies and finding the bad companies
Last I heard, the NHS is still having trouble starting in 4 Regions. So it could just be the region you are in that is the problem for now.
@Keitarour
"there is no need for 1%, it will only deter businesses from seeking help from SBA or may increases the chances of a business defaulting on a loan"
For 1%??? Come on...
By the way, thanks for the advice but I voice my opinions wherever I want. This was a free country last time I looked...