AMERICAN INNOVATION WILL RESUSCITATE THE ECONOMY

But entrepreneurs need lenders to give them a helping hand

The one thing Americans have maintained is the resolve to dream up inventions, generate new ideas and ultimately provide the world with organizations like Google, Apple and Facebook.

The opportunity for innovation and improvement is stronger today than it has ever been. No-one should assume the American spirit for entrepreneurship is over. Far from it – today young businesses, new graduates and fresh-faced leaders are pioneering the way for the economy of the later part of the 21st Century.

It seems the only obstacle in their way is lending – or the lack of lending. Lenders are reluctant to supply credit for businesses especially new start-ups, despite the Government’s efforts to pump billions into banks.

Bank analysts are monitoring asset quality very closely—credit deterioration is occurring throughout the industry, raising concerns from both regulators and the market. In times like these, banks first must stop the bleeding, before they open up the purse strings and are willing to become more aggressive in their lending practices to small business.

Behind close doors the bankers will tell you that this will not happen anytime soon and we have yet to see the bottom of this downturn.

To further exasperate the situation, the bank’s lack of lending has provoked criticism of bailout programs like Troubled Asset Relief Program (TARP) and skepticism of whether Obama can really revive the banking system.

One certainty throughout all of this is the simple reality that if banks cannot support the country’s innovators, they will play a huge part in prolonging this economic downturn.

Banks have a duty to lend money to those who will drive this nation and the rest of the world – the one thing this nation has always done and always done well.