Small Businesses Need Installment Loans to Find Funding

Community banks are suffering because of the excess of Wall Street firms

Small businesses are going to need to look into installment loan options as the economy balances itself out. According to Camden Fine, president of the "community banks account for 45 percent of all small business loans. They are the engines of Main Street." Unfortunately community banks' reputations were tarnished with the focus on bigger financial institutions who were managing unscrupulous lending policies during last year's loan explosion. Small banks are protesting, stating they had nothing to do with the excess of Wall Street firms and risky investments but they are under the same criticisms, and even bigger penalties.

Small banks are under scrutiny

Community banks are also feeling a backlash of bad behaviors of Wall Street investment firms. They are under the same tight analysis as the entire banking industry but the $767 bailout package is catering to large banking institutions. Small banks are under the same microscope, but with a much smaller benefit. In addition, there is an assessment the government wants to charge all members of the banking community to build the Federal Deposit Insurance Fund; the same fund that large banks drained.

According to Fine, many community banks are choosing to wait out the economic downfall in lending. They are turning to other revenue-generating practices to make ends meet, but staying far away from lending practices. Businesses who formerly looked to small business loans as a means of underwriting, now have to look to installment loan options for additional resources. ... click here to read the rest of the article titled "Small Businesses Need Installment Loans to Find Funding"