The housing bust is hitting entrepreneurs the hardest.
During the boom times, many small business owners pulled money out of their homes to start or expand their enterprises. Today, many are scrambling because it is next to impossible to get a small business loan, and the loans they took out on their homes are resetting and triggering higher payments.
California is particularly hard-hit by the problem because small businesses account for more than 50 percent of all jobs there.
"Small business [owners] are hurting, and they're scared," says Chad Moutray, chief economist in the U.S. Small Business Administration's Office of Advocacy.
Source: BusinessWeek.com, Mara Der Hovanesian, with John Tozzi (04/22/2009)
