Small businesses are one of America's most important sources of job creation, yet they are currently starved for credit. Banks aren't lending to small companies like they used to, despite government prodding.
You could, like many, use this as yet another opportunity to decry the American economy and hate the banks.
Yet if you happen to be someone with capital to invest and a proactive mindset, then your ears should perk when you hear about small business liquidity problems.
This is especially the case if you aren't confident in markets right now. $10,000 can mean a lot to a small business, but within the scope of many Americans' retirement portfolios it is chump change.
Thus perhaps now is a great time to invest in a small business you like, one that is already operating but running into difficulties simply due to a lack of cash. They'll be far more willing to negotiate with a new potential partner now, than they would be if times were great and money flowed easily from U.S. banks.
As the government ponders the need for government-supported small business lending, anyone with spare capital to invest should ponder privately supporting it as well. You'll help the U.S. recovery and might actually make money doing so.
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