VCs want bail out money? Really?

The WSJ reported that VCs are lobbying the government to get access to SBA funds from which they are currently excluded. What the article didn't mention was that this exclusion only applies to companies that are majority owned by VCs. That is they own more than 50% of the ownership.

VCs advocate that young high growth companies create 80% of new jobs, which is true. However, companies that are controlled by VCs typically got that way because the company didn't live up to initial expectations and VCs took more and more capital. Choosing between providing funds to those companies versus owner controlled businesses is a no brainer. Owner controlled businesses are typically more careful with capital and patient and while i have no data is likely to survive and thrive in the long run.