Small Business California president Scott Hauge is urging the U.S. Small Business Administration to conduct a study of bank practices and their adverse effects on American small businesses.
"It has become quite clear that one of the biggest concerns of small businesses is access to capital," wrote Hauge in a letter to SBA Office of Advocacy Chief Counsel Dr. Winslow Sargeant. "Small Business California recently surveyed our network and within 48 hours, received over 150 comments regarding the problems they are having with banks, especially the big banks."
Hauge also mentioned that all of these comments were from small businesses throughout the state, suggesting a great deal of difficulty for businesses looking to launch an LLC in California. He went on to suggest small businesses are having their credit lines pulled, loans withdrawn and interest rates spiked at the hands of large banks.
Hauge asserts that a comprehensive study of these practices could illuminate California, as well as the rest of the country, as to reasons why small business development has stalled in the economic recovery.
Tags : ca, financial management, llc filing, small business management
Posted: Oct 27th, 2010