NYTimes: Credit Vise Tightens for Small Businesses

From The New York Times:

Credit Vise Tightens for Small Businesses

Lenders are waiting to take losses in commercial real estate and
credit cards before loosening up money.

http://www.nytimes.com/2009/10/13/business/smallbusiness/13lending.html

This is the new normal. Banks are not lending. They need the money in
reserve for the loan losses they know are on the books. No one who has
commercial or real estate loans out right now can feel comfortable.

The lack of bank support means that these businesses are in trouble.
They might go to angel investors but the terms are going to be very
high. There are no more jobs to hire for. No more sales that are
bottled up.

Even good contracts that want bids are going to become less
competative. This could force many industries to start hoarding cash,
like the tech industry. Because banks failing to finance business has
stymied company growth.

Requirements for loans are much harder than before. Money is tight and
many folks will be happy just to have a job or profitable company.
Cash is king. The old days of burn rate until IPO are gone. Not that
some won't manage to do that, but it is no longer the bplan of choice
for most.