Understanding the New “Money” Environment

We’ve just come through the most difficult year most small business owners and operators can remember. If you were to visit one-on-one with them, you would find the majority still don’t really understand what happened from a financial perspective. Many would not be able to explain why banks they’ve partnered with for years suddenly refused their business. They wouldn’t know that the reason for the change depended on whether or not their bank participated in the Troubled Asset Relief Program (TARP) by taking funds from the federal government. They wouldn’t understand that if their bank did participate, the bank’s ability to be flexible with customers was forfeited to government oversight. Or that banks that chose not to participate in TARP, followed suit out of fear.