Which Matters More, Small Business or Tourism?
Florida lawmakers are deciding whether to grant Governor Charlie Crist’s request for $8.5 million in funding to provide low-interest loans for companies with fewer than 100 people.
Some Florida lawmakers aren’t thrilled about the idea, which would require slashing the state’s tourism-promotion budget to reallocate the funds. They argue that tourism brings more money to sunny Florida than a handful of small businesses. According to the AP story, one House Democrat says that the state’s tourism agency, dubbed not too creatively “Visit Florida”, is “a proven commodity that generates revenue…I’m going to invest in something that works.” 
Proponents of the small-business program, which would offer loans of up to $250,000 at a rock-bottom 2% interest rate for small businesses that guarantee they’ll create jobs, say in the current environment it makes more sense to invest in job creation. No word on how exactly the companies will “guarantee” they’ll be job providers, but they’ll have to pay penalties if they don’t live up to their word, the AP story says. I called the governor’s office asking for further explanation on that, but they haven’t yet returned my call.
Lawmakers were also quick to note that the program isn’t a bailout. Rather it’s a sort of band-aid for relatively healthy companies that have been cut off from capital. Of course, $8.5 million only goes so far - maybe to 30 or 40 companies. Is it enough to make a dent?
Readers, what do you think? Are these kinds of programs worth the money? Will more states move to help their small businesses during these tough times?
Photo: AP