7 ms·

Sam's Club will offer small business loans ($5,000 to $25,000)

22 points by tamarindo 16y ago

ryansloan 16y ago
But will you have to buy a full pallet of them from the aisle next to the socks?
singer 16y ago
Why focus on only minority, women and veterans? Is that supposed to turn Sam's Club into some type of saint?
- jtbigwoo 16y ago
  It's about finding under-valued opportunities, I'd imagine. I assume that minority-, woman-, or veteran-owned businesses are similarly risky compared to businesses owned by white males. (Perhaps they're even less risky in some industries due to quotas, etc.) If these disadvantaged businesses are getting fewer loans because the bank managers are discriminating, it could be an opportunity for Wal Mart to make some money where big banks aren't.
  - Anechoic 16y ago
    Perhaps they're even less risky in some industries due to quotas, etc. Quotas are illegal. Some public projects have goals but those aren't firm (and are regularly waived). Full disclosure: my sole proprietorship is a certified MBE/DBE in a number of states.
- j_baker 16y ago
  No, but it does show that Walmart is at least trying to not be an evil megacorporation.
  - eru 16y ago
    Selling me cheap stuff of reasonable quality is all I ask my retailers to do. (Or alternatively, higher quality at higher prices. Depends on what I am looking for at the moment.) No other moral requirements needed.
    - mattmillr 16y ago
      I'd say they need not be "morally net positive," but I'd prefer they didn't engage in practices that are morally detrimental. Or, you don't have to sponsor a tree-planting program, but please don't irresponsibly dispose of all that used motor oil you're collecting.
    - BrandonM 16y ago
      Even if it is to the detriment of society at large, including you? I don't know if it's changed in the last couple of years, but Wal-Mart used to help its employees apply for food stamps, Medicaid, and other aid programs because they didn't pay them enough. They performed an experiment that showed that having a single security guard patrol the parking lot at night completely eliminated crime (mugging, car break-ins, etc. that occur with regularity in Wal-Mart parking lots), but they did not put it into effect to save what? $75,000 per year? They have been damaging to the environment in several cases and often tend to kill the local economy in small towns. Just because a business sells something that seems cheap, that doesn't mean it actually is cheap. Consider the portion of your taxes that is going to supplement the workers' income, to pay police to address crimes that occur in Wal-Mart parking lots, to pay extra taxes because Wal-Mart only enters areas that will give them tax breaks, and so on. The way that corporations are designed precludes them from being moral. Society would be much better off if we could restructure the incentives of corporate America to make morality part of their make-up.
      - eru 16y ago
        > I don't know if it's changed in the last couple of years, but Wal-Mart used to help its employees apply for food stamps, Medicaid, and other aid programs because they didn't pay them enough. If they can get people to work for them at those wages, and they are happy with the employees they get, why not? I am glad that we don't have a minimum wage in Germany (in most sectors anyway). > They performed an experiment that showed that having a single security guard patrol the parking lot at night completely eliminated crime (mugging, car break-ins, etc. that occur with regularity in Wal-Mart parking lots), but they did not put it into effect to save what? $75,000 per year? Why don't the people who benefit from no crime pool their money and hire a security guard? > [...] and often tend to kill the local economy in small towns. Sources please. I know of one study about good effects. > The way that corporations are designed precludes them from being moral. Society would be much better off if we could restructure the incentives of corporate America to make morality part of their make-up. I agree wholeheartedly. Internalize externalities. And this isn't confined to America, where I do not live.
  - hugh3 16y ago
    Really? Racist discrimination in lending policies is non-evil nowadays?
    - deleted 16y ago
      [deleted]
stcredzero 16y ago
So, this is like "micro-finance" but with larger granularity suited to the North American environment.

22 points by tamarindo 16y ago

ryansloan 16y ago

But will you have to buy a full pallet of them from the aisle next to the socks?

singer 16y ago

Why focus on only minority, women and veterans? Is that supposed to turn Sam's Club into some type of saint?

jtbigwoo 16y ago
It's about finding under-valued opportunities, I'd imagine. I assume that minority-, woman-, or veteran-owned businesses are similarly risky compared to businesses owned by white males. (Perhaps they're even less risky in some industries due to quotas, etc.) If these disadvantaged businesses are getting fewer loans because the bank managers are discriminating, it could be an opportunity for Wal Mart to make some money where big banks aren't.
- Anechoic 16y ago
  Perhaps they're even less risky in some industries due to quotas, etc. Quotas are illegal. Some public projects have goals but those aren't firm (and are regularly waived). Full disclosure: my sole proprietorship is a certified MBE/DBE in a number of states.
j_baker 16y ago
No, but it does show that Walmart is at least trying to not be an evil megacorporation.
- eru 16y ago
  Selling me cheap stuff of reasonable quality is all I ask my retailers to do. (Or alternatively, higher quality at higher prices. Depends on what I am looking for at the moment.) No other moral requirements needed.
  - mattmillr 16y ago
    I'd say they need not be "morally net positive," but I'd prefer they didn't engage in practices that are morally detrimental. Or, you don't have to sponsor a tree-planting program, but please don't irresponsibly dispose of all that used motor oil you're collecting.
  - BrandonM 16y ago
    Even if it is to the detriment of society at large, including you? I don't know if it's changed in the last couple of years, but Wal-Mart used to help its employees apply for food stamps, Medicaid, and other aid programs because they didn't pay them enough. They performed an experiment that showed that having a single security guard patrol the parking lot at night completely eliminated crime (mugging, car break-ins, etc. that occur with regularity in Wal-Mart parking lots), but they did not put it into effect to save what? $75,000 per year? They have been damaging to the environment in several cases and often tend to kill the local economy in small towns. Just because a business sells something that seems cheap, that doesn't mean it actually is cheap. Consider the portion of your taxes that is going to supplement the workers' income, to pay police to address crimes that occur in Wal-Mart parking lots, to pay extra taxes because Wal-Mart only enters areas that will give them tax breaks, and so on. The way that corporations are designed precludes them from being moral. Society would be much better off if we could restructure the incentives of corporate America to make morality part of their make-up.
    - eru 16y ago
      > I don't know if it's changed in the last couple of years, but Wal-Mart used to help its employees apply for food stamps, Medicaid, and other aid programs because they didn't pay them enough. If they can get people to work for them at those wages, and they are happy with the employees they get, why not? I am glad that we don't have a minimum wage in Germany (in most sectors anyway). > They performed an experiment that showed that having a single security guard patrol the parking lot at night completely eliminated crime (mugging, car break-ins, etc. that occur with regularity in Wal-Mart parking lots), but they did not put it into effect to save what? $75,000 per year? Why don't the people who benefit from no crime pool their money and hire a security guard? > [...] and often tend to kill the local economy in small towns. Sources please. I know of one study about good effects. > The way that corporations are designed precludes them from being moral. Society would be much better off if we could restructure the incentives of corporate America to make morality part of their make-up. I agree wholeheartedly. Internalize externalities. And this isn't confined to America, where I do not live.
- hugh3 16y ago
  Really? Racist discrimination in lending policies is non-evil nowadays?
  - deleted 16y ago
    [deleted]

stcredzero 16y ago

So, this is like "micro-finance" but with larger granularity suited to the North American environment.