The ART Of Business

Why Are the Banks Sticking It to Small and Medium-Sized Firms?

Over the past several months, I've had the opportunity to meet with dozens of small and medium-sized business owners across America. These are the true job creators and will be the foundation of any economic revival.

Almost to a person they've told me- off the record- that their individual situation with the banks is the one of their most pressing concerns.

Despite the trillions pumped into the banking system over the past three years, many lenders are making it more difficult than ever for these companies to get and keep their credit lines.

Banks are so now risk-adverse that they are calling in loans on long-time clients with flawless payment histories; pulling lines of credit with little or no explanation; jacking up lending fees whenever they want; and, making borrowers jump through more hoops than ever before.

Without access to predictable, affordable commercial credit, America's economy- and the world's- will languish far longer than necessary.

I'd like to hear what all of the presidential candidates and the economists meeting this week in Jackson Hole have to say.

Dishearteningly, however, no one seems ready or able to address this critical issue.

TAGS: Supply Chain
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