Small Business California Urges Impact Study of Bank Lending Practices on Small Businesses

SAN FRANCISCO--(BUSINESS WIRE)--Today, Small Business California President Scott Hauge called upon the United States Small Business Administration (SBA) Office of Advocacy’s Chief Counsel, Dr. Winslow Sargeant, to urge his immediate approval for the SBA to conduct an impact study of bank lending practices and the resulting adverse effects on small businesses throughout the country.

“Small businesses are seeing their lines of credit pulled, their loans pulled, interest rates on credit cards spiraling upwards of 30% and extending the time of clearing deposit checks.”

In a letter to Dr. Sargeant, Hauge reported, “It has become quite clear that one of the biggest concerns of small businesses is access to capital. Small Business California recently surveyed our network and within 48 hours, received over 150 comments regarding the problems they are having with banks, especially the big banks.”

Hauge also noted that all of the comments that he received were from small businesses throughout the State of California and all had several issues in common. Hauge reported that “Small businesses are seeing their lines of credit pulled, their loans pulled, interest rates on credit cards spiraling upwards of 30% and extending the time of clearing deposit checks.”

The growing concerns among small businesses in their ability to gain access to capital sparked Hauge’s strong interest in lighting a fire under the SBA to conduct the impact study immediately and to make the findings and recommendations available to the public by a confirmed release date.

Hauge further stated that “Small Business California would like to know when this research will be completed and rest assured that we will make it available to our networks.”

Small Business California is an advocacy organization with a network of over 5,000 small businesses and more than 100 trade associations, including the Plumbing Heating and Cooling Contractors of California, the California Association of Competitive Telecommunications Companies, and the Northern California Independent Booksellers Association.

For further information, contact Scott Hauge, President of Small Business California, directly at [phone] or by email at [e-mail].