Small business owners feel the credit crunch - New York Amsterdam News

  • 📰 NYAmNews
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

When Nat West, owner of cider-making company Reverend Nat’s Hard Cider, decided to supplement his wholesale business by opening a taproom in a bustling neighborhood in Portland, Oregon, he thought getting financing would be a breeze.

The larger banks approved just 14.2% of applications in February, down from 28.3% in February 2020. Small banks granted about 20% of loan applications this February, but they were approving about half of all requests back in early 2020, before the pandemic hit.

Companies that have existing lines of credit are seeing interest rates increase. James Carron, who operates Flatirons Pharmaceuticals, in Longmont, Colorado, has seen rates increase for his line of credit that’s about $150,000. Before the pandemic, the rate was 6.99%, but that went up to 10%. Now it’s 13% and rapidly approaching 14%. Other potential lenders he contacted had even higher rates.

“We can’t issue corporate bonds or have other money available to us,” he said. “Large corporations have multiple avenues for them to secure reasonable rates for funding. A small business owner doesn’t have that ability.”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 269. in BUSİNESS

Business Business Latest News, Business Business Headlines