The American Dream, long frayed and tattered, has finally snapped.
Years ago, common cultural knowledge told young entrepreneurs that they could build a thriving business so long as they had a good idea and the willingness to see it through. Success was always just around the corner; if they pushed themselves hard enough, they would find it.
But that long-fabled idea of “pushing on” towards success falls a little flat these days, especially when many hopeful entrepreneurs can’t even access the capital they need to start moving. Approval rates at small banks and credit unions—which small businesses often rely on for financial support—dropped to new lows amid the pandemic.
judi slot , slot online, agen slot online, judi slot online, situs slot online, situs slot, agen slot, daftar slot online, situs judi slot online, daftar situs judi slot online terpercaya 2020, situs slot online terbaik, casino slot online 888, situs slot online indonesia, nama nama situs judi slot online, situs slot online, online slot, judi slot online terpercaya, main slot online, game judi slot online
At the end of 2019, small banks boasted an approval rate of just over half (50.6%), according to the Biz2Credit Small Business Lending Index; today the lending rate is 18.2%. Matters are even worse at credit unions. Even before Covid-19, approval rates were about 40%; today the rate is 20.3%. The situation, to put it mildly, is not reassuring for business owners who need cash now, and badly.
Small business owners desperate for cash
In this context, it’s unsurprising that loan refusals come with very real, and often very emotional, consequences. Being barred from traditional small business loans can push entrepreneurs to take extreme and even dangerous measures to save their businesses. Last year, researchers for the Federal Reserve’s 2020 Small Business Credit Survey found that the most common owner response to cash flow lapses was to dip into personal funds. Over half of respondents reported they had withdrawn money from their personal savings accounts or asked friends and family for financial support within the past five years.