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Even businesses that have healthy revenue and are up to date on their payments are having their loans called in or their interest rates raised.
The National Small Business Assn. reported that 67% of small businesses said in August that they had been affected by the credit (Dickerson, 2008). The number of small businesses using bank loans was at a 15 year low and 32 % said their loan terms were getting worse (Dickerson, 2008).
Start-ups, manufacturers and construction businesses are in a particularly bad bind, said Scott Hauge, president of Small Business California (Dickerson, 2008). Business owners who took out home equity lines of credit to supplement their budgets are hitting a wall as banks begin freezing or restricting the funds...
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Common topics in this essay:
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