Thriving small businesses still struggling to get loans

[firedupdem]

**So now the banks blame new regulations as the reason for not loaning money. I'm glad the president will address this issue.**

The owner of several popular bookstore cafes, called "Busboys and Poets" in the Washington area, Shallal said his annual revenue tops $14 million.

But the success hasn't persuaded his bank to give him the loan he wants to expand two of his stores and add 40 employees. Shallal said the only way his bank would lend him money was if he used his home as collateral.

"I want to have a loan that's really a business loan that's going to use my business as collateral," Shallal told CNN. "And I was told no, in these economic times it's very difficult for banks to give money this way."

Small-business owners across the country have voiced similar frustrations, complaining that -- despite billions of taxpayer dollars in relief funds and exhortations from lawmakers to help Main Street -- banks are still holding back on loans.

President Obama will tackle the issue Monday when he meets with bank leaders to discuss upcoming financial regulatory reform. He is expected to push banks to increase small-business lending, along with a host of other reforms to the industry.

But industry analysts say the liquidity problem won't be easily solved. One small-business expert said stricter government regulations have pulled banks in two directions.

http://www.cnn.com/2009/POLITICS/12/12/obama.bank.lenders/index.html

[firedupdem]

1. another example of how the bank issue = damned if you do,

damned if you don't!

http://money.cnn.com/2009/12/12/news/economy/obama.banks.fortune/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29


This article says the administration screwed up by taking the bailout repayments. States the administration should have told the banks to keep the money they borrowed and lend it out.

[SeattleGirl]

3. The banks are freakin' lying, I think.

They're still collecting money hand over fist. I don't think the issue is that they CAN'T loan the money, but that they WON'T loan it.

I'm glad Obama is going to meet with him. I hope he's going to knock their heads together.

[Cha]

2. This can't happen too soon..

"President Obama will tackle the issue Monday when he meets with bank leaders to discuss upcoming financial regulatory reform. He is expected to push banks to increase small-business lending, along with a host of other reforms to the industry."