Economic Idea 5: Corporate Loan Guarantee Program - Guarantee corporate loans with an insurance program - Create 50 million jobs in 5 years time - Create $750 billion per year of new tax revenues in 5 years time

This idea is utterly brilliant!

Suppose we government-guarantee corporate loans by implementing an insurance program as following:

Companies can ask, when they apply for a corporate loan with a bank for the Corporate Loan Guarantee Program. They pay 5% interest more for their corporate loan for the duration of 5 years. This money goes into an insurance fund of the government. So if the loan is $100,000, 5% or $5,000 goes into the insurance fund, and if the monthly payments are $2,000 per month, they pay only 5% more each month or $2,100 per month. They will get the loan from the bank even if they don't have good credit.

Now, if they default on their corporate loan, like 1 in 10, the government pays back the remaining loan balance to the bank, so if 1 in 10 defaults and half of principal payments are paid back, or 50% of the loan, or average default in 2.5 years (of the 5 years loan duration), the government can 100% cover the defaults (1 in 10 defaults and 50% of the loan amount = 1/20th of the loan), so it costs $5,000 to insure a $100,000 corporate loan.

This 5% insurance rate is for businesses with good credit. For businesses with bad credit, a 10% insurance rate can apply so even if 1 in 5 corporate loans are defaulted, we can recover the insurance cost. This means corporations with bad credit can apply for the Corporate Loan Guarantee Program as well and can get a loan from the bank.

So our government never loses money with this insurance program, it is covered by different insurance rates for the different corporate credit scores, from good credit to bad credit.

What is the result?

Corporations that have good or bad credit can all apply for corporate loans to grow their business. They will get the loans from their banks, whereby previously, they were denied.

This boosts corporate loans issued by 10-20x fold per year.

1. Corporations can ask for loans to hire employees, which produces jobs

2. Corporations can ask for loans for investment loans, like investing in a manufacturing plant, which produces jobs

3. Corporations on the brink of bankrupctcy can ask for refinancing loans, we save jobs

4. Startups can get a corporate loan from the SBA (Small Business Administration), then the insurance rate can be 20-25%, so even if 1 in 2 corporate loans are defaulted, we can insure them and give them a startup loan, we produce jobs

5. Companies can refinance all their corporate loans into a consolidated loan. For example, a company has 5 corporate loans with an average duration of payments of 2.5 years, thus half already paid off, then they can take one 5-year consolidated loan so the monthly principal and interest payments are only half compared with previously. (they spread the remaining loan balances over another 5 years)

So it costs our federal government no money to insure all corporate loans of American businesses with the Corporate Loan Guarantee Program.

What are the results and government revenues?

If $500 billion per year worth of corporate loans are guaranteed (insured at 5% = $25 billion per year), we produce 10 million more jobs per year, or in 5 years, $2.5 trillion worth of corporate loans are guaranteed (insured at 5% = $125 billion per year) and we produce 50 million more jobs. These 50 million more jobs produce (at $15,000 of employee taxation per year) $750 billion per year of new government revenues in 5 years time.

To avoid subprime corporate loans, we could for instance provide this loan insurance only for businesses that have at least good credit, even so, corporations with good credit are guaranteed a corporate loan from their bank! We boost corporate lending by banks 10-20x fold!

Implemented with the SBA, for small businesses and startups

We can also limit this program towards small businesses and startups, for loans up to $1 million, so we take a 10% insurance rate for small businesses those that produce most jobs, for $100 billion per year of guaranteed loans and $10 billion per year budget to insure them (like implemented with the SBA), then we produce 2 million more jobs per year, and in 5 years time, 10 million more jobs, thus $150 billion per year of new tax revenues in 5 years time. We can also fund startups at 25% insurance rate, when they don't have a corporate credit score yet the first 2 years, then they are insured even if 1 in 2 corporate loans default and we can fund 100,000ds of startups per year.

This has a massive impact on our American economy. Corporations are almost guaranteed to get business loans from their banks and they will grow extremely fast and create massive jobs!



Write to President Trump so he proposes this idea as an election promise for the 2020 presidential elections!

Also check out idea nr. 164: $$$$$$$ >> Turn $10,000 into $200,000 in 4 years time by betting on a massive jobs plan by President Trump

Also check out idea nr. 90: $$$ >> Make $2,000+ per month Become an Make-Money-Become-Millionaire consultant!

< Back to list
Share this webpage with your friends and family!



Please also check out these millionaire-ideas:

77.$$$ >> Make $1 million+ over 20-30 years Become a millionaire Purchase foreclosed properties, renovate them, and resell them for profit or rent them out

118.$$$ >> Make $1 million in 24 years investing $1,000 per month in dividend stocks

148.$$$$$$$ >> Make 100% return per year on the stock markets with FinViz stock screener - Turn $5,000 into $600,000+ in 12 months time!

154.$$$$$$$ >> How to turn $100 into $1 million in less than 2 years time on the internet - Fastest way to become an internet millionaire!

Don't have a job? No problem!

140.$$$$$ >> Make $1,000+ per month - Make $30/hour testing websites

141.$$$$$ >> Make $1,000 per month - Make an easy $1,000 per month online

124.$$$ >> Make $1,000 - $10,000 per month with TaskRabbit
www.IWantToBecomeMillionaire.com -> Save $2,000-$3,000 per month, make $10,000 per month!
>> GO BACK TO LIST <<
IWantToBecomeMillionaire.com
You like this idea? Please share this idea with your family and friends!
>> GO BACK TO LIST <<
>> GO BACK TO LIST <<
You like this idea? Please share this idea with your family and friends!
>> GO BACK TO LIST <<
You like this awesome $money$-making website? Please share this website with your family and friends!