twitter facebook stumble upon rss

Bah Humbug, Bank of America!

sign up for the momlogic newsletter Tweet This
Bank of America, you got your bailout -- $45 billion dollars. I and thousands of other small business owners helped fund your loan via the Troubled Asset Relief Program (TARP). Now you can't give a long-term client and struggling small business a $10K line of credit? Really??!!

hand holding money

Elizabeth Thorp: I am a working mom of three little girls and the proud owner of a Bethesda, MD, communications firm. We've been in business for almost four years, and things have been great. This year has been lean. The major challenge for any small business is cash flow. I learned firsthand today that financial assistance from the banks is about as likely as the Salahis receiving a genuine invite to the White House.

I have $40,000 in outstanding client invoices -- in the meantime, I have to pay employees, tax advisor, accountant, phone bill, office space, etc., etc. I need a $10,000 loan or line of credit for a couple of weeks until the outstanding revenue comes in. I have been a Bank of America customer for 15 years -- I have personal and business accounts and credit cards. I pay all their monthly fees, transfer fees, ATM fees, eBill pay fees -- I've been a great client. Not good enough, apparently.

Today I requested access to my business credit card's line of credit -- I was technically eligible for $16K, and asked for $10K. I was transferred to the credit authorization experts, who asked for past years' revenue, what the firm has collected this year in fees, what assets I have in checking, stocks, 401Ks. The representative told me that the last few months, I was a few days late paying the business Visa -- I explained I have just transitioned accountants since the last one wasn't following up on deadlines and paperwork. Keep in mind, the minimum payment due was $100 dollars ... After a short period on hold, I was told that because I was delinquent on the business Visa, because my checking account was in the red, and because the company's revenues this year were less than last year's, they couldn't extend this line of credit to me. Hello?!! That is exactly why one needs a loan! Then she told me in light of their review, they were reducing my personal card limit from $9K to $1K and the business card limit from $12K to $3K. I called for financial assistance and hung up the phone in worse financial shape.

A few days ago, the Obama administration announced a new TARP program for small business. The initiative could give banks access to government money without restrictions, such as limits on executive pay, as long as they use it to make loans to small businesses.

Mr. Lewis, Bank of America is the largest bank in America. I know you've been scraping by lately on a $1.5M base salary, but you've made an enormous amount of money and are leaving with millions more in retirement. I just needed $10,000 for one month. Had you loaned it to me, B of A would have made $2,990 in interest, plus the "one-time $400 transfer fee." Before you retire, set an example to other lending institutions and expedite the new TARP program for small business lending. Make your rates palatable or even -- wait for it -- competitive! Shelf the ridiculous "$400 fee." Do the right thing and give hardworking "Main Street" business owners the same chance Bank of America got from the U.S. taxpayers. 'Tis the Season!


next: How to Resolve Conflicts
20 comments so far | Post a comment now
Anonymous December 21, 2009, 7:07 AM

Unfortunately what happen to you is SOP for BoA. My husband is a vendor at a BoA call center and they are trying to lower the credit lines on everyone, the people that call for any kind of assistance (including just getting a replacement for lost or stolen card and reporting fraud) just shoot up a red flag and get bumped to the top of the list for review. My husband actually listened in on a call where a gentleman had his card stolen, they cancelled the card and then refused to issue him a new one because his credit was “not eligible” for a new card. It didn’t matter in the least that he did nothing wrong and needed the card, the fact that he needed the card was exactly why he couldn’t get the card. BoA did not even need a bailout, they used the money to buy up other struggling companies that were rejected for bailout. I would recomend that anyone stay away from BoA if at all possible, their practices are awful.

Anonymous December 21, 2009, 7:13 AM

Also, Mr. Lewis is using his retirement bonus to pay back the government loan so that BoA can not be held to the new restrictions to force them to loan any money.

Jean December 21, 2009, 10:33 AM

Them and all the banks are stealing everyone’s equity in their homes.

I guess it is your turn to be robbed baby…………how does it feel.

When the country did not bail out the homeowners and everyone said “kick them losers out” the country started down this path. Way to go you stupid people.

Jean December 21, 2009, 10:38 AM

Oh, and by the way. The moneys they are paying the government money back are mostly insurance monies from the FDIC, Fannie mae other government insurance programs. Why do you think they get the homeowners to do short sales? When they are done the banks actually make money on the houses.
They will own the whole country…..including your house and business.

Keith Brooks December 21, 2009, 2:09 PM

BoA is no different from Citibank or HSBC either. We are in a similar discussion and issues. Long time customers means nothing to them so whoever does get us the money will get business and personal accounts and mortgages.
Like I told them, if I had more cash flow, I wouldn’t need you and you can bet that will be our model going forward. But who keeps 6-12 months of cash on hand when you have a SMB?

Robin December 21, 2009, 2:31 PM

Anyone with military or government ties should check out Pentagon Federal Credit Union. The have great interest rates.

SandyR December 21, 2009, 2:46 PM

This is insane — why isn’t the news covering this type of thing if it’s so widespread? How can they get away with this? I really hope the Obama WH makes good with us small businesses and it’s not just talk. Forward to your friends, people!!!

Pamala December 21, 2009, 4:22 PM

I always get a bit mad, you know BofA was forced to take the TARP funds when they neither needed them nor wanted them. And they are paying it back in full as soon as they’re allowed to.

Pete December 22, 2009, 2:14 PM

This does not surprise me in the least. Once the banks got their bailouts, their only self interest is to hold on to as much money as possible, and to stay on top and not go under again. You should try a business cash advance, a business cash advance is similar to a small business loan in that your company will receive funding to use for various business needs and the cash will need to be repaid. However the differences are substantial. The business cash advance is unsecured. You will not need to subject yourself or your company to the same scrutiny or investigation. You will not have to prove yourself or your plan, and you don’t have to have a perfect credit history as well.

Pete December 22, 2009, 2:15 PM

This does not surprise me in the least. Once the banks got their bailouts, their only self interest is to hold on to as much money as possible, and to stay on top and not go under again. You should try a business cash advance, a business cash advance is similar to a small business loan in that your company will receive funding to use for various business needs and the cash will need to be repaid. However the differences are substantial. The business cash advance is unsecured. You will not need to subject yourself or your company to the same scrutiny or investigation. You will not have to prove yourself or your plan, and you don’t have to have a perfect credit history as well.

Jackie December 22, 2009, 8:42 PM

Please! These execs are in the carribean this holiday season or skiing in aspen and screwing EDT and other small businesses…The White House should step in and reprimand these horrible banks. I hope you pulled your accounts and joined a local bank — much more flexible and friendly. Who needs a loan who’s rolling in money anyway? of course you’re not in great financial shape when you ask for the line of credit! Bah humbug, B of A!!

David Smith December 26, 2009, 5:48 AM

Apply for a Loan from $100,000to $1500,000 with no collateral required
and receive a no obligation loan approval

We welcome the opportunity to show you how effective we are at helping
our clients obtain the money they need to succeed. Our professional
staff is available for a Free Consultation.
At America One Funding, we understand that unexpected events arise
requiring extra money that may not be readily available to you.

An Unsecured Personal Loan can provide excellent relief for any
purpose, including vacations, debt consolidation, home improvements, tuition,
car repair, or even to start a new business.
$1,000 to $9,999
We give out
home loans
Auto Loans
Car loans
Mortgage loans
Business Loans
Internation Loans
Personal Loans
Apply for a Loan from $1,000 to $9,999, with no collateral required and
receive a no obligation loan approval.
$10,000 to $150,000
Apply for a Loan from $10,000 to $150,000, with no collateral required
and receive a no obligation loan approval
************************************************************ *
To get started on contacting this loan please contact us at cbc.lenders.vk@gmail.com

Mr. David Smith
CMD loan update

WP Themes December 31, 2009, 1:55 PM

Good fill someone in on and this mail helped me alot in my college assignement. Say thank you you seeking your information.

currency exchange rates August 3, 2010, 6:34 PM

Excellent blog! I truly love how it is effortless on my eyes as well as the info is well written. I am wondering how I may be notified whenever a new post has been made. I have subscribed to your rss feed which must do the trick! Have a nice day!

panasonic lcd hdtv November 27, 2010, 2:51 PM

Very well written article indeed, thank you so much for sharing such information with us, i hope we will see more from author in the future. Cheers.

Granville March 19, 2011, 4:23 AM

You must take part in a contest for among the best blogs on the web. I’ll suggest this web site!

Shawn March 19, 2011, 4:31 AM

Exceptional post, I believe affiliate marketers should larn a lot with this weblog its rattling user pleasant.

Luigi March 19, 2011, 4:41 AM

I truly liked that. It has been extremely educational and beneficial. I’m going an extra chance to check on far more articles.

filmy bez limitu March 28, 2011, 10:11 PM

Thankx for taking the time to speak about this, I really feel strongly about it and really like discovering added on this leadingic. If possible, when you gain expertise, would you mind updating your weblog with much more details? It is quite beneficial for me. Big thumb up for this weblog!

online shoes March 29, 2011, 10:34 PM

This website online is mostly a walk-through for the entire information you needed about this and didn’t know who to ask. Glimpse here, and you’ll definitely discover it.


Back to top >>
advertisement