$14 Million Annual Gross – Busboys Poets Denied Loan

Andy Shallal owns three popular bookstore cafes in the Washington Dc and Virginia areas. His annual gross sales are over $14 million, and yet he was denied a recent bank loan unless he tied the loan to his house as collateral.

Taxpayers and small businesses owners are frustrated as billions of dollars were pumped into the financial system in order to save large banks, but the situation of small businesses has not gotten better as they have not seen much relief and banks continue to tighten their lending.

The banking system has developed stricter underwriting criteria for loans, as they want to cut out bad debt and invest in businesses that have a high chance of paying back the loan. There is currently legislation passing through Congress that would make it more expensive for banks to operate.

“You’ve got to really give that money back to the source that’s going to provide the most amount of jobs, the most amount of economic stimulus for the economy,” Shallal said. “That’s small businesses.”

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