Small companies looking for loans in August found some. The overall volume of applications and approval rates were up at small banks where loan approvals increased slightly to 47%. But big banks, those that got most of the big bail out funds and have $10 Billion or more in assets, granted only 10% of their loan requests from small businesses.
Alternative lenders such as accounts receivable financiers, cash advance lenders and Community Development Financial Institutions approved 64% of loan requests for small business. Naturally there is no record of business the loan shark community did or of the number of loans that were given to small business people by friends and relatives.
The latest "QE" is doling out 40 Billion a month and big banks are hoarding the cash. One of the really big ones just announced they're cutting 30,000 jobs over the next two years. Meanwhile top execs will get their bonuses while taxpayers pick up the unemployment compensation tab. The message is simple. A small business should not do business with a big bank.
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