MSNBC "The Ed Show" - Transcript
Interview
MSNBC "The Ed Show" Interview With Senator Mark Warner (D-VA)
Interviewer: Ed Schultz
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MR. SCHULTZ: In my playbook tonight, I want to talk about the financial literacy of the American people for a moment, the literacy of the Congress when it comes to finances. Now, you've heard it before; members of Congress really don't have a clue about business. They're deciding about hundreds of billions of dollars of your tax money going out the door.
Tonight I wanted to speak to a freshman senator who knows a bit about business, has been very successful. He knows how to make it happen. He knows how to run a state. He did that -- Senator Mark Warner of Virginia and former governor of the state of Virginia and very successful businessman. He sits on both the Banking and Budget Committees.
Senator, I've wanted to talk to you for a while. I appreciate your time tonight.
SEN. WARNER: Thanks, Ed.
MR. SCHULTZ: You bet. I think the president ought to be talking to you every day with the success that you have had in understanding this climate of getting businesses moving. What would you do for small business -- what suggestion would you make to the president and his economic team about jump-starting this economy again now that the stimulus package is out there a little bit?
SEN. WARNER: Oh, I think I would give the administration good efforts in terms of starting, but they're still incomplete. I mean, 40 percent in the early segment that was brought up, 40 percent of the stimulus is actually tax cuts. We didn't get that word out. A lot of that is five-year loss carry-backs for small businesses. We need to promote that more.
The SBA has announced a lot of new programs, but I've been kind of frustrated by the fact that they've been very slow at actually getting the details out. Karen Mills, the new SBA administrator, I think she gets this. She needs to get staffed up so she can get these programs actually out to the small businesses.
Where we get is small businesses are particularly getting slammed by the shutting down of the financial markets. As banks constrict the amount of lending, it's the small business guys who are oftentimes around the margins, who hurt the most when their credit lines get cut off. And we've got to do more, and the SBA is one area to do that.
MR. SCHULTZ: And Senator --
SEN. WARNER: One other place --
MR. SCHULTZ: Yeah, go ahead.
SEN. WARNER: Just let me make one other point here is that, you know, we've not seen any of the up side of the stimulus programs -- the broadband money, the health care IT money, a lot of these energy programs. We've got to make sure, as that money goes out, that we don't exclude small businesses from getting their fair share. That's where the innovation is going to come in this economy.
MR. SCHULTZ: So they need to hit the gas pedal on this. They need to get rolling on this. The timing is a little slow, in your opinion.
SEN. WARNER: The timing has been slow. You know, I am sympathetic to the concern. They want to get the dough out, but they don't want to have these new initiatives stumble coming out of the starting gates. But people are getting frustrated. They want to see these dollars come out.
You think about rural broadband. Nothing could do more to promote small businesses around rural America, that disproportionately has been hurt by this downturn, than making sure we get those broadband dollars out and that small businesses get a piece of it.
MR. SCHULTZ: I agree with you. The broadband is awfully big. But I've been harping on this cheap money. Why is it that Wall Street gets it so cheap -- and you're on the Banking Committee -- and, you know, why is it small companies go into their local banks and they're looking at 9 percent, 10 percent, 11 percent? They've got to guarantee the loan. I mean, people are scared. I mean, how are you going to get risk-takers back into the market? Senator, this was your game before you got into politics.
SEN. WARNER: Ed, one of the things we're going to do is, on a going-forward basis, I don't want to ever hear the claim that a bank is too big to fail. The fact is, that's anti-capitalism when we've allowed some of these institutions to get so big they can't fail. And consequently, it's oftentimes these big banks who've cut off the credit lines to our smaller banks.
Let's also put out the bank that a lot of small and community- based banks, they didn't get us into these problems. They're still out there supporting the small businesses around. We need to do more to support these small and community-based banks, because they're really the ones who support the small businesses that still need to be the life blood of our economy.
MR. SCHULTZ: Does Tim Geithner, the Treasury secretary, does he get it when it comes to small business, or is he just a Wall Street guy?
SEN. WARNER: You know, Ed, I actually had breakfast with the secretary this morning, and one of the points I made with him -- and we had the Banking Committee there -- and he, I think, responded very well. He understands we've got to do more to push out these SBA loan guarantees basically to help support lending to small businesses.
I think you're going to see some new announcements coming up in the next week or so that will accelerate some of these programs. A lot of these programs are well-intentioned, but they've got to get the fine print out so small businesses, who are looking for the support, can go ahead and apply and get this kind of support they're needed.
So far, I've gotten a lot of frustration from small businesses in my state that say, "Hey, Senator, you know, this is a good idea, but where do I get the details? How do I make sure that I can actually get these monies running into my company?"
MR. SCHULTZ: And you, being a former governor, having run a budget, how hard is it to engage in these what we call shovel-ready projects? I mean, that's all we heard about, all these shovel-ready projects. Yet, I mean, I know in business, and you do, Senator, that they can wire money pretty fast these days.
SEN. WARNER: Well, that's --
MR. SCHULTZ: I mean, they've got to get the money to these states, do they not?
SEN. WARNER: Well, they've got -- well, listen, one of the things I think we all are -- I would have liked to have seen more of in the stimulus plan was more money for infrastructure. I mean, infrastructure disproportionately, again, goes to small contractors, folks who can build things. We unfortunately ended up with only about 20, 25 percent -- actually, less than that in total -- that went to infrastructure projects. I think we could have done more.
So I would say the administration is headed in the right direction. A lot of these programs are still incomplete. But we've got to realize we need more elected officials that can actually read a balance sheet.
MR. SCHULTZ: There's no doubt. You just spoke volumes, Senator. Great to have you with us tonight on "The Ed Show." We've got to have you back. Thanks so much.
SEN. WARNER: Thanks, Ed.
END.
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