Maybe they really are
psychopaths. Here's the
latest from Bank of America.
Bank of America Corp., under pressure to raise capital and cut risks, is severing lines of credit to some small-business owners who have used them to stay afloat.
The Charlotte, N.C., bank is demanding that these customers pay off their credit line balances all at once instead of making monthly payments. If they can't pay in full, they are being offered new repayment plans for as long as five years, but with far higher interest rates than their original credit lines had.
Business owners complain that BofA's credit squeeze is abrupt and could strain their small companies and even put them out of business.
That's some thanks to the nation which just keeps bailing them out. Remember when the bailout was supposed to spur banks into making loans to small businesses to help the economy rebound? BoA, along with Citibank, made just .6% of all SBA 7A loans in 2010.
Lots of credit unions provide lines of credit for small businesses, as do local community banks. In fact, together they provide about 80 percent of small business loans. It looks like time for the 20 percent of small businesses to move their money.