If you have a home business, you have probably noticed that things are getting tight. Not only is the economy slowing (and your income slowing as a result of customers spending less), but the financial crisis is causing a liquidity problem that makes it difficult to get more credit. And $700 billion bailout isn’t doing much to ease the credit crisis.

The credit freeze is causing a huge problem for many small and home businesses. Here is what Jamila White points out in an interview with Sparkplug CEO:

The current financial crisis is already affecting small business
owners’ access to capital. A few months ago, the US Small Business
Administration put a freeze on backing SOHO loans (”Small Office Home
Office”) — loans aimed at the smallest of the small businesses, which
usually are less than $20,000.

When you look at the big picture, the hypocrisy is unbelievable.
Here you have small businesses, which are *creating* jobs in this bad
ecomony when big businesses are not, getting shut down on access to
capital, and then you have the SBA essentially out of money to back
loans for small businesses.