Jul 14, 2009 5:00 pm US/Pacific
Stimulus Money Stimulates Projects And Jobs
Bay Area Business Clamor for Billions in Fed Projects
SAN FRANCISCO (CBS 5) ―
President Barack Obama said expect the nation's jobless rate to get worse before it gets better. Since Congress passed the $780-billion Recovery Act in February, the country has lost 2-million jobs. But there could be a mini-recovery in the Bay Area with billions in stimulus money.
California is slated to get about $80-billion in stimulus money. About $50-billion of that will go directly to projects that will create jobs. The money has to be spent by the end of 2010 and about 10% is currently available for Bay Area projects.
Bay Area businesses are clamoring for their share. Blaisdell's business product and office supply company in San Leandro needs stimulus money to give business a boost.
"We have always had business with Caltrans. We haven't heard anything for a couple months and that impacts our small business," said owner Margee Witt.
Witt and business partner Faye Clements attended the SBA Business Matchmaking Event in South San Francisco. Consider it a speed dating session for small businesses courting government agencies and companies that plan to spend about half of the $80-billion in California stimulus money.
Many hold "shovel-ready" contracts. There are more than 400 small businesses pitching everything from construction to catering, I.T. services to business supplies. The businesses had 15 minutes to make a pitch.
Maureen Moss helped Margee and Faye position their small business to be considered as a vendor for the California Department of General Services.
With construction, research, and infrastructure projects planned... she said it's too tempting to expect a fast economic recovery.
"It'll take time from what I understand and you don't improve in one day. But you do make improvements in a day," said Moss.
Marty Keller, The Office of the Governor Small Business Advocate, said new jobs are being posted now.
"Every day we get an announcement from the Fed about a pot of money that'll be available in 2 to 3 weeks."
Keller said workers will really start to notice stimulus money providing opportunities in the next 3-6 months.
As for Margee, hiring more workers is a possibility but only after she sees stimulus money "work" for her small business.
"We are hoping it does trickle down. It would be lovely to see but so far we haven't seen positive response in that regard." Blaisdell's could see an increase in business soon, because $3.4 billion in stimulus money is now heading to Caltrans transportation projects.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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