For the economy as a whole, the recession ended in June 2009. And big companies have been racking up hefty profits since then. But for smaller companies it’s a different story. They’re dealing with worried customers, rising costs and banks’ reluctance to lend to them, The Wall Street Journal reports.
"Given what our customers perceive as a flattening in the economy, they're being very cautious on capital expenditures," Tim Reynolds, president of Tribute, which is based in Hudson, Ohio, and sells its software to small industrial distributors, tells the paper.
Tribute’s 35 employees must continue to take a day of unpaid vacation every month, as the company waits for business to rebound. Tribute instituted that requirement during the recession, which began in December 2007.
Reynolds also has postponed buying software that would help him manage his sales prospects and customers but could cost as much as $50,000.
"Small businesses aren't hemorrhaging, but they're still waiting for that significant uptick," Todd McCracken, chief executive of the National Small Business Association, tells The Journal.
Loans to small businesses fell 8.6 percent in the year through March, according to the most recent government data.
"Small businesses are the drivers of innovation and job creation in our economy, and they're being suffocated by banks and institutional investors that aren't willing to lend," John Paglia, a finance professor at Pepperdine University and author of a recent study on small business lending, tells Time magazine.
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