Poor Julia

Apparently, one of President Obama's hit ads on Mitt Romney features a woman named Julia who could have her dreams shattered if......Romney succeeds in cutting the funding to the SBA by 20%.  OK, apart from whether it's true that Romney actually would do this--that's apparently something that the Obama team didn't bother to find out (yet another example of Obama's emulation of Clinton?)--there's the very real question of whether people are actually helped by SBA loans.

If you take a close look, the answer is probably "no," since SBA loans are only available to those who don't have access to ordinary loans.  In short, if Julia got an SBA loan, she was a poor credit risk with a poor business plan.  So what really happens when poor credit risk Julia gets her loan?

For starters, the default rate in 2009 was 12%, and worse yet, competition from those with poor credit will tend to push sound businesses into default as well.   So what's the Obama administration doing for Julia?

Pushing her into bankruptcy, of course.