I think you're missing out on something fairly basic. About 15%-25% (depending on which survey you trust) of small business loans were in the form of HELOCs (H

I think you're missing out on something fairly basic. About 15%-25% (depending on which survey you trust) of small business loans were in the form of HELOCs (Home Equity Line Of Credit) pre-housing bust. Banks no longer want to take risks on HELOCs so the qualification standards for getting them are pretty insane. As a result, business owners who used HELOCs as a way to deal with seasonal changes in demand or just as a way to have funding to get a business off of the ground no longer have that option. See http://www.clevelandfed.org/research/commentary/2010/2010-18.cfm http://www.clevelandfed.org/research/commentary/2010/2010-18...