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Slow Motion Business Failures Have Started

I have had the first few customers requesting to defer loan payments today, as they do not have the cash on hand to make them. Granted, they won’t necessarily fail completely if they go into default on one loan, but it is a warning sign. One is a craft distillery, bar shut down, no revenue; the other is a packaged foods manufacturer (they are most likely done for, their supply chain has been so disrupted they couldn’t resume operations even with a flush account, they’ve been surviving quarter to quarter, the owner has kept them afloat with her personal assets and those are tapped out).

Its not that we won’t grant deferrals, it’s that this bank has an antiquated and highly Byzantine process for them, and basically treats them like a new loan application. We need all new financial documents, etc. The whole process could take a week, and these folks need an answer by Friday.


Its things like this that make me a little happy this is my last week here, even though next Monday is a terrible time to start a new job.

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