Guidant Financial Group Blog

According to a report in today’s BusinessWeek (see Commercial Bankruptcies Rising), more businesses filed for bankruptcy last month (April) than have been filed monthly since 2005, when new bankruptcy laws were put into effect.

Yikes!

These bankruptcies are, of course, stemming from the crisis in the mortgage industry. One thing that the article does note, however, is that these bankruptcies are disproportionately attributed to businesses in the ailing housing industry.

The worst news, however, could be for prospective new business owners. The article cites a Federal Reserve survey that concluded that more than half of U.S. banks have raised standards for small business loans.

Just as a misbehaving older sibling can ruin Saturday night privileges for younger brothers and sisters, it would seem that one rogue group of lenders can ruin future entrepreneurs’ chances at a good loan.

Fortunately, there are types of small business financing (notably Guidant’s 401(k) small business financing solution) that are not subject to tightening lending standards. With Guidant’s 401(k) small business financing solution there is even NO qualification process – if you have the money in your retirement account, you can use it!