A client recently called the office and told me that their long-standing revolving line of credit, which they used sparingly and payed down immediately after use, was pulled by their bank with no notification or explanation. He found out about it because he tried to use the line, only to have someone at the bank tell him the line had been revoked.
Wondering if this was happening to other clients, I checked into our network of 18 SBDCs across the State of PA. The answer is “YES.” Other SBDCs have also had clients contact them to relate a tale much like the one above.
I decided to do some research to see if we could answer why this is happening. Here’s what I found.
A Senate Hearing held on Thursday, March 19, might give us a clue. To read the article on the results of that hearing, click here.
And here is an interesting piece on SBA’s emergency business loans–up to $35,000 to pay down debt. Most debt, except for an existing SBA loan, qualifies.
Finally, here is a great little piece on how to up your chances of getting a loan! To read it, click here.