I attended a presentation a few weeks ago given by a venture capitalist. It seems that the money is trapped behind a wall of undefined requirements and procedures. In short, although the bail-out money is there, few people understand what the requirements are and how to apply for it.
In addition, VC's are moving to the less risky funding ( C-D levels) and away from the initial funding ( A-B ). So the higher risk start ups are suffering. And the VC's are demanding a bigger piece of the equity pie (80-90%) so the start up crew and the CEO are basically working for wages -- high risk and low pay with little or no equity at the end. This is going to kill the golden goose for sure!
Currently, I am trying to either increase my line of credit or apply for an SBA loan. I am figuring out the ropes with the help of my wife. She has a knack for figuring out bureaucratic document mazes. She is a freelance medical writers that deals with FDA requirements which I guess gives her the experience she needs.
Anyhow, we will try to figure it out. If we do, we will post our findings somewhere.
On another note, although credit is suppose to be loosening up, in the last few weeks my credit card interest tripled. And I have read of credit card companies cutting off or reducing the credit limits for business customers.
On the plus side, at least we're not getting 5 preapproved credit card applications a day any more.
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