Kevin Bibelhausen is Proud To Be An American (Business Owner)

I’ve never felt more proud to be an American in my life than the day I signed the papers for my first small business loan. The Small Business Administration (SBA) loan was backed by the federal government and I was filled with hope to make my American dream a reality. 

Since then, I have been living my American dream. Don’t get me wrong - It’s not always dreamlike. It’s hard work full of challenges. But it’s incredibly rewarding too. I’m my own boss. I’m in charge of my time and where I put my energy instead of punching someone else’s clock. And, win or lose, I’m at the helm of my own destiny. 

The loan was the beginning but I’ve found that being a business owner inspires my own patriotism in a multitude of ways. And frankly, I think we need to take back patriotism from Americans who co-opt it to pump themselves up at the expense of others. So this week, we’re going to talk about a different kind of American patriot - your local small business owners. And we’ll talk a bit about how you too can live this American life. 

I’ve never been a big ‘yea, America’ super patriotic guy. But there’s something about taking advantage of a government-backed loan program and coupling it with money from capitalistic investors… there’s no equal in the global landscape. It’s uniquely American. 

It allows someone like me who wasn’t wealthy and had very little money to personally invest (less than 10K) to get a shot. I punched my ticket in the land of opportunity. 

Small Business Owners are betting on America like America bets on them. It’s a symbiotic relationship that makes this business owner very proud to be an American (cue the patriotic music).

Here are the top 5 things that make me proud to be an American business owner:

• Providing jobs that feed families in my community

• Helping others reach their own career goals

• Knowing my business contributes to the GDP and jobs numbers

• Contributing in a much bigger way to my local Main Street than I did as an individual (there’s only so much coffee I can drink)

• I feel much more connected - in my community and the world

This week in Capitalism for Humans we’ll dig deeper into the patriotism of small business ownership and touch on some basics of accessing your American dream. 

The Impact of Entrepreneurship on Local Economies

Creating Jobs and Opportunities

Think about it: every small business that opens its doors is like a mini economic boom for the local community. Small businesses are not just quaint shops or cozy cafes; they're powerhouses of job creation. They’re key contributors in bolstering and expanding the community's economic landscape.

When an entrepreneur sets up shop, they do more than bring their dreams to life—they weave themselves into the fabric of the community. This act alone creates a ripple effect: jobs are generated, which means more money circulates locally. It's this circulation that keeps communities vibrant and economies robust.

Beyond providing employment, these enterprises foster opportunities for skill development and career advancement within neighborhoods. They create environments where locals can thrive professionally without having to look beyond their own backyards.

For me, knowing that I’m providing jobs that put food on the tables of my employees or pay for their kids’ activities is a particular point of pride. My risk is paying off for me - and for them. 

The Role of Small Businesses in Economic Growth

You might wonder how significant the impact of small businesses can be on broader economic scales. Believe it or not, the influence of tiny enterprises on the vast expanse of our economy is monumental. Far from merely generating employment, business founders invigorate the broader economic landscape through their role in propelling innovation and enhancing competitive spirit.

Small businesses account for more than 40 percent of all economic activity in the United States. And they account for more than 60% of net new jobs since 1995. Businesses like mine are crucial to making the economy in our country work. I’m proud to be a part of that. 

A critical aspect underpinning this contribution is connectivity—both locally and globally. As entrepreneurs navigate through establishing their foothold, they inevitably become intertwined with global conditions affecting supply chains, market demands, and technological advancements. Thus making entrepreneurship not only beneficial but essential for sustainable economic growth. 

I pay so much more attention to world events now than I did before because so much of it has the potential to affect my business. Should we all be paying more attention? Yes. But being a business owner who relies on supplies from and sells to customers around the world makes it a necessity. 

Nurturing Community Development Through Entrepreneurship

Let's zoom in closer on how exactly entrepreneurship nurtures community development because it goes way beyond economics 101 stuff here folks.

We've already established how jobs are created but think about what happens next—the formation of strong networks among business owners fosters collaboration over competition resulting in innovative solutions tailored specifically towards addressing communal needs.

Moreover, when individuals invest time, energy, and resources into building something together, there tends to be an increase in civic engagement and pride among residents. This unites people around common goals and aspirations, leading to healthier, thriving societies all thanks to the entrepreneurial spirit alive and well in our towns, cities, and nationwide.

Part of The Club

Not gonna lie, there is a bit of ego involved here. Business owners get some respect in the community and that feels good. I like being part of local, regional and national groups for business leaders. I enjoy helping others buy and grow their own companies. And I’ve certainly benefited from the advice and expertise others have given me. It feels American.

The Basics of SBA Loans

Back to the Small Business Administration, the source of my loan backed by the power of the American government… SBA loan programs offer more than just money—they give small business owners peace of mind with longer repayment terms and lower interest rates compared to many traditional lenders. Whether it's for equipment purchases or real estate deals, these funding opportunities open doors that seemed locked tight before.

SBA loans are administered through banks that are designated SBA lenders. 

The SBA Guarantee Advantage

Now here comes an ace up many entrepreneurs' sleeves: SBA  loans work differently than traditional bank financing options because they come with Uncle Sam’s backing via guarantees up to 90%. What does this mean? Simply put—the government promises banks that if things go south they'll still recoup most losses involved with lending the money. 

By assuring banks of a safety net, this measure opens up new avenues for them to consider loan requests more liberally. In essence, this arrangement might pave the way for extended payback periods and additional perks, thus closing financial divides and offering enterprises the necessary backing to flourish.

The Most American Thing About SBA Loans

It’s the government - so you know what that means, right? A lot of paperwork. More than a mortgage. You have to be willing to wade through the pages and pages of application paperwork and meticulously fill out every field. They really want you to cross your t’s and dot your i’s. It’s not completely unreasonable because they are going to be lending you a significant amount of money. Just be aware of this upfront and budget your energy. There will be times when you feel like all that paperwork might not be worth it. I promise you, it is. 

The Perfect Pairing

SBA loans pair perfectly with loans from private investors. Those investors are much more likely to back you when you already have some financing secured by an SBA loan. They know you’re getting funding that will set you solidly on the right path. That means their risk is lower as well. It’s a match made in heaven for all parties. You get access to more capital. The government helps you start a new business that provides jobs and contributes to the economy. And investors get to come along for the ride, earning a return on their investment. 

This is how I started my business. I even started a fund that helps other acquisition entrepreneurs buy businesses - paired with SBA loans. 

Let’s Call It What It Is…

Becoming a business owner is leveling up almost instantly. In America, that’s still possible. It’s one of the reasons so many people come to our country. And it’s one we who’ve lived here all our lives often forget. 

In many cases, our government is making business ownership possible. 

Let’s call it what it is: government assistance. 

Entrepreneurs on X kill me when they talk down about people on government assistance. Bruh - how about that SBA loan that helped you start or grow your business? How about that PPP? You are where you are today, at least in part, because of government assistance. 

I am where I am today because of government assistance. 

Thank you, America! 

I’m proud that my government helped me acquire my own business where I’m my own boss and I employ other people in my community. Yes, it’s a ton of work. It takes courage. And it takes money. Money I didn’t have. But America did. And she chose to invest in me. I’m proud to pay it back - and pay it forward.