Small Business Bankruptcies Up 81% in California
When your government creates a $787 billion stimulus plan and forget to add any goodies for small business, the driving force behind the economy, these things happen.
Small business bankruptcies up 81% in California. And, it’s only just beginning.
The LA Times reported:
The Obama administration’s new plan to give a boost to small businesses reflects continued trouble in that sector, which is facing new failures even as much of the nation’s economy is stabilizing.
As credit lines have shrunk and consumers have cut back on spending, thousands of small businesses have closed their doors over the last year. The plight of struggling firms has been aggravated by the reluctance of banks to lend money, said Brian Headd, an economist at the Small Business Administration’s office of advocacy.
“While bankruptcies are up, overall, small-business closures are up even more,” Headd said.
California has been particularly hard hit. The latest data show small-business bankruptcies up 81% in the state for the 12 months ended Sept. 30, compared with the previous year. Filings nationwide were up 44%, according to the credit analysis firm Equifax Inc.
The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business.
When you have an administration in Washington that continues to demonize business and outrageous barriers at home stifling business, is this really a surprise?
Related… The New York Times reported today that the $154 billion jobs bill passed by the House last week will allow the 217 Democrats who voted for it to tell their constituents that they care about unemployment. But it’s unlikely to do much else.