Mr. Speaker, make no mistake in what the hon. member had to say. Very clearly he does not support government sponsored small business loans. Yet he clearly identifies access to capital as one of the greatest deterrents to expansion and creation of small business. If that is not an obstacle against small business, then I do not know what is. Small business loans work.
As a government we encourage schedule A banks to get involved and create a higher level of loans to small and medium size business, but we also appreciate the fact that when starting out some businesses in fact do require extra support. We do not pretend that we would be setting the exact guidelines on how schedule A banks will extend funds. We see ourselves as a partner. My hon. colleague very clearly outlined that 96% of these do work, 96% of these small businesses that are securing loans work.
I would like to give the hon. member a scenario and I would be curious what his response is. I would also ask him to take some time out and actually visit some of the people, some of the small businesses, the mom and pop stores, the mom and pop businesses around this country that have qualified and succeeded. Tell them that the government should not have been involved, that the government should not have been partnering with the banks and with the small business community to allow that job growth and job creation to take place.
I would be interested in the hon. member's comments on this scenario. An average Canadian has a great idea for a business, an idea which both I and the person think is very viable. The person has the management expertise and ability to carry forward that idea but he or she is missing one small thing. He or she is missing equity and therefore does not meet the basic lending guidelines set in place by schedule A banks.
The banker sees an opportunity. Understanding of course that there is some onus and some responsibility on the banker as well and a certain amount of prudence in regard to lending, the banker sees there is an opportunity to extend funds, and this is typically not the only source of funds I might add, to this small business, to this great idea, to this Canadian to succeed if in fact there is partnering.
If that does not take place, that small business will not get off the ground because traditional lenders require some equity. They require a capacity with respect to 25% or 30% equity. When government partners with schedule A banks and with small business people, it allows some latitude in this area for these small business people to create a business or to expand.
This has been a very effective tool for small and medium size business all across the country. Bankers and branch managers who are very active in the community will tell us that. Small independent business people will tell us that. I am also saying that. I have business people in my riding who have qualified for it and have been successful simply because it would not have taken place if they had to qualify under the strictest of traditional lending guidelines.
When the hon. member was talking about accessing taxpayer dollars for small business, does he not consider small business an integral part of our national economy? If great Canadians with great ideas have small business opportunities, does the member not see a role for the government to play if traditional lending guidelines are not being met?