Small businesses in recession time

It's kind of like a yes and a no. On one hand, with the provisions of the recovery act, ARC (American Recovery Capital)loans will free up capital and put more money in the hands of small-business owners when they need it the most. But some business owners can't find a lender willing to work with businesses of any size right now.

Even lenders who participate in the SBA-guaranteed loan programs for small businesses are still unsure whether it makes sense to do ARC loans. On the other hand, for small-business owners, it's finding bankers who are lending right now. Some banks have sharply curtailed lending and some never make small loans.

Many banks are unsure about lending because they may not be sure if the loans will be repaid as stated.

To find lenders who are eager to work with small businesses, even if right now some of them,the banks, are strapped. It's a good idea to have a good bank relationship before you borrow, that alone could possibly make it easier in a recession.

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i am totally agree with renee's views on this topic. we need to have good relationship with these banks .it can make more options to the small businessess

According to the Indian Economic Summit which was held in Delhi it was actually advisable by the committeee that this is the best time for lending loans to small & medium businesses.