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Mike Norman


This study examines why it is very difficult for a small business to obtain commercial bank loans during a recession. The methodology consisted of examining other research and writings, interviewing sources, and conducting a survey of small businesses. the study discussed the pre-financing preparation of a small business. Aspects of commercial bank financing are discussed, including: description of debt financing, the process for obtaining loans, and problems facing the commercial banking industry. A brief description is given of recessionary conditions and how economic indicators are used to describe those conditions. Various issue concerning financing a small business during a recession are explored. Title contract financing is presented as a method of financing which is an alternative to commercial bank financing. Small business survey seeks to find how various small businesses finance themselves throughout the life of the business. the survey also asks what impact the present recession has had on the respondent's business. Conclusions include: it is much more difficult to finance a small business with commercial bank loans during a recession, commercial banks are getting out of lending to small businesses, and new methods for financing small businesses are needed.

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