- Joined
- Mar 12, 2009
- Messages
- 13,160
- Points
- 0
Small-business owners, hit by recession, seek remedies
By Rachel Streitfeld, CNN
December 7, 2009 -- Updated 0219 GMT (1019 HKT)
Washington (CNN) -- Denise D'Amour's business had never been better. In 2000 she opened a bike shop in a quaint Washington neighborhood, selling a range of bicycles and gear. Capitol Hill Bikes became popular enough for her to expand the shop twice.
Then the recession hit, and like many small businesses, D'Amour's shop struggled to stay afloat. Fewer people bought new bikes, and D'Amour could no longer afford the bike shop's rent. Her bank reduced her credit line.
"When that dried up, we had to use our existing cash reserves to get product, and we're kind of chasing it a little bit," D'Amour said. "So you sell a bike and use that money to buy another one."
Now the shop's windows are plastered with giant liquidation signs proclaiming "Going out of business," and "75 percent off."
D'Amour is not alone. Businesses with fewer than 50 employees cut 68,000 jobs in November, according to employment services company ADP.
A range of small-business owners tell CNN their banks have stopped lending them the money that the owners say would help them weather the recession.
The White House focused on the plight of small businesses last week at a jobs summit, which brought together business owners and financial experts to discuss the economic situation.
By Rachel Streitfeld, CNN
December 7, 2009 -- Updated 0219 GMT (1019 HKT)
Washington (CNN) -- Denise D'Amour's business had never been better. In 2000 she opened a bike shop in a quaint Washington neighborhood, selling a range of bicycles and gear. Capitol Hill Bikes became popular enough for her to expand the shop twice.
Then the recession hit, and like many small businesses, D'Amour's shop struggled to stay afloat. Fewer people bought new bikes, and D'Amour could no longer afford the bike shop's rent. Her bank reduced her credit line.
"When that dried up, we had to use our existing cash reserves to get product, and we're kind of chasing it a little bit," D'Amour said. "So you sell a bike and use that money to buy another one."
Now the shop's windows are plastered with giant liquidation signs proclaiming "Going out of business," and "75 percent off."
D'Amour is not alone. Businesses with fewer than 50 employees cut 68,000 jobs in November, according to employment services company ADP.
A range of small-business owners tell CNN their banks have stopped lending them the money that the owners say would help them weather the recession.
The White House focused on the plight of small businesses last week at a jobs summit, which brought together business owners and financial experts to discuss the economic situation.
