Homeowners are not the only people having trouble with their loans. Many small businesses have also been hit and are now either facing default or foreclosure. According to the National Association for the Self-Employed, “These small business owners will be at-risk for “payment shock” and default as their monthly mortgage payments skyrocket during the “resets” that are scheduled to begin in 4th Quarter 2008 and continue through 2012,” said Prof. Samuel D. Bornstein of Bornstein & Song, CPAs and Consultants. “The resulting defaults will be the cause of the upcoming second “tsunami” wave of foreclosures that will dwarf the subprime crisis and will take many homeowners and small business owners.”
So, why are small businesses having this trouble? Many of them are being squeezed from both sides. On the income side, with the recession in full swing, it is getting harder to get paid. According to a survey by Intuit, 22 million of the natio...
By Charles M Cooper ยท April 27 2009
small business, foreclosure, business loans, fdic
