Heidi Kallet had to sign away her life, so to speak, to achieve the American Dream.
Despite the dismal economy, the Virginia small business owner was ready to open her second stationery store and hire some new staff. Although Heidi’s business was booming, credit for small businesses had dried up and she couldn’t get a loan — that is, until she gave a bank everything she owned and signed her and her husband’s life insurance over as collateral.
This is not the only story of small business owners going to extreme lengths to get a loan. Many will take out second mortgages, run up their credit cards and employ various other risky measures because the loan environment is so bad. But two new federal programs formed under the 2010 Jobs and Credit Act might help them get the funding they need to launch new successful businesses and help rebuild our economy.