<i>About half of all new establishments survive five years or more and about one-third survive 10 years or more. As one would expect, the probability of survival increases with a firm’s age. Survival rates have changed little over time.</i>
- Source: U.S. Bureau of Labor Statistics, BED<p>Small business loans are inherently risky and an 80% rejection rate accurately reflects that risk. How would creating a bigger market for bad&#x2F;risky loans help the situation in any way? Sure, it might boost employment&#x2F;wages temporarily, but in the end a majority of small businesses fail and enter bankruptcy. They bring their loans to bankruptcy court where they are renegotiated, leading to a haircut for the banks, less liquidity, and a waste of time&#x2F;money&#x2F;effort that could have been better spent elsewhere.<p>Remember, bad loans in the mortgage market caused the great recession. Higher loan standards are a <i>good</i> thing - and a necessary outcome of the 2008 fiasco of irresponsible&#x2F;non performing debt getting pushed off bank balance sheets to the fed and ultimately the public.