One writer calls for banks to stand up and do what's right for small-business owners. "It's easy to understand why banks would push to recover whatever they can immediately from small companies facing insolvency, considering the cost and time involved in doing workouts with companies that may not be viable in the long term," writes John Tozzi. BusinessWeek/The New Entrepreneur
It is times like these that remind small businesses owners on the value of working with smaller local banks. Workouts are more common for small banks, and the officers of smaller banks tend to put more value on relationships. Larger regional banks spend a lot of time during good economic times on ways to pickup small business customers. Many of their actions today should make it abundantly clear why they find it difficult to penetrate and hold onto the SMB customers.