Declined Small Business Loan

Veronica James, a Nashville Tennessee resident seeking a small business loan for her new business start-up, Urbandillo, was declined a bank loan from her recent bank the Nashville Business Journal reported on March 3rd.  Ms. James decided to take to the streets, and stood outside while snow flurries drifted across her face, with a sign, “Will Work for Business Loan.”  She has one patent already in existence and another pending on her product line that includes bags, clothing, and blankets that fold up and turn into a sack with their own drawstring.

At this point, it seems that the media has taken this economic crisis to a whole new level.  Granted lending has tightened up, and it is more difficult for small business owners to obtain loans from their banks, but since when do banks fund start-ups?  That seems to be in the 3 F’s arena – friends, family, and fools.  Banks are having difficulty lending to established businesses; it doesn’t make sense that they would take that kind of a risk and lend to an unestablished one.  Perhaps the idea will take off, perhaps not.  It’s just a plain risky investment.  When I first saw Crocs, I thought it was the silliest and ugliest looking foot apparel ever and that it would never take off.  Boy was I wrong.  So who am I to judge?

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