Small-business bankruptcies rise 81 percent
December 21, 2009
More grim economic news for the Golden State: The L.A. Times reports that small-business bankruptcies in California are up 81 percent for the 12 months ending Sept. 30, compared with the previous year. That compares to 44 percent for filings nationwide. The number reflects 19,000 individual businesses that have folded.
Experts warn that the actual number in California is probably higher because many owners file for personal bankruptcy rather than seek protection for the business. In response, according to the Times, the Obama administration is proposing to funnel more federal stimulus money to increase loans to small businesses.