We don’t think it’s a secret that banks aren’t lending to small business. Those over 50 employees probably have their needs satisfied.
Out of our twenty or so Solutions Forum clients here in Arizona, only two of them even have a credit line. Everyone else is self funding.
And yet, economist William Dunkleberg from NFIB says that the banks have something like $3,5 trillion in excess reserves over capital requirements, that could be lent.
And, too, there was an article in the Wall Street Journal recently that the SBA is having problems meeting its targets for lending.
All of this means that the banks ought to be in the mood for lending, but aren’t. It looks like extreme risk-averse behavior.
We know that banks paperwork requirements are a bit odd, having headed a focus group on how they could speed up the process.
So, now that you’re out of your Memorial Day funk and hangover, go out and see if you can get that loan.
Let us know what problems you encounter.