Of course, the money transfer should go directly to the businesses. This is what Ann Petifor and the New Economics foundation would say. Mark Warner advocates allocating some of the TARP bailout to small businesses. He beleives that the banks provide a due diligence. If Congress directly allcoated the money, there would be political pressure to lend to certain businesses in certain districts... John Edmund's book, Brave New Wealthy World excoriates the inefficiency in the developing world when government connected banks make loan decisions to crony capitalists. The reporter pointed out a business that had the same loan for thirty years and has been paying each payment on time. The bank is now calling the loan, apparently to shore up its balance sheet. Yet obviously, he never paid it off. Would not that business be better off with a share loan, the bank takes a share of gross revenue.
But government stimulus can be distributed by sortition juries. They would check and watch each dollar, each business receiving a government loan, to ensure that the money is put to constructive purposes.