TARP panel says small banks should curtail lending
After months of hearing government officials and small business leaders urging banks to lend more to small business, a TARP panel is now cautioning small banks to curtail lending. Why? Because of losses on commercial real estate loans and what they call a pending “tidal wave of commercial loan failures.”
It’s not a surprise if you look around McHenry County. With numerous retail spaces sitting empty and the amount of office space available, you have to believe that owners are struggling to make loan payments to their banks.
As a small business owner, make sure you look at the financial health of your business bank. If they are struggling, the chances of their lending new money may be decreasing, especially if they listen to this TARP panel’s recommendations.
Steve Trojan, CPA is owner of SMT & Associates, Inc, a Crystal Lake IL based tax and accounting firm, and Complete Payroll Inc, (www.completepayrollinc.com) a payroll processing firm.
