Why Can’t Small Businesses Get Loans?

September 18, 2013

Why is it that Sears, the once iconic retailer now on life-support, can get a $1 billion loan, but small businesses trying to get started or expand can’t get bupkis?  Al Lewis, one of our favorite business writers, took a crack at that question examining that dichotomy in his MarketWatch column.  Al writes:

I got a tweet this week from a guy who sells “Made In the U.S.A.” neckties in Belleville, N.J. “What financial institution would lend Sears $1B?” he asked. “They are a dying whale. But still small biz can’t borrow a dime!”

Since the financial crisis of 2008, the Federal Reserve’s accommodative policies have led to one big corporate refinancing after the next. Companies borrow billions for stock repurchases, dividend increases, refinancings and buyouts.

Al goes on to explain that Sears just wants to borrow more money to roll over debt it already has on the books. That’s a sure way to create more jobs, now isn’t it.  Click here to read more of Al’s column, “How come Sears can get a loan but you can’t?