By now you’ve seen this all over the news. My question is: will this actually make a difference? In the end, the government cannot force non-TARP receiving banks to lend money to anyone as long as they operate within the law. However, I’m hopeful that the improving economic conditions will make banks feel more comfortable with lending to small businesses.
Based on my own personal experience over the past year, your best bet is to approach your local bank — not one of the large national/international banks. Many local banks limited their exposure ( or did not participate at all ) to sub-prime lending, so they’re more likely to lend based on the merits of an investment versus having to maintain capital to sure up their balance sheet. Also, consider the local commercial lender who’s mission is to lend only to local businesses.