We all know that the engine of any modern economy is entrepreneurial small businesses. Well, maybe someone needs to tell that to the bankers. In October, the major banks reduced lending to small businesses by $1 billion, and the 22 banks that received the most TARP money have reduced small businesses credit by a staggering $11.6 billion.

Pledges are being made by banks to lend more in 2010, but I suspect small business owners will join the ranks of consumers (who have had these same banks pull their credit card lines and increase monthly minimum payments) in the “once bitten, twice shy” brigade.

Commercial finance companies, like the factoring business I work for (Bibby Financial Services) have spent the last six months stepping up to the plate and working with small businesses to help them get it done. This is the same throughout the factoring industry.

I suspect many a businesses owner’s New Year’s resolution will be to never be beholden to a bank again. Their behaviors cannot be predicted or, maybe one could say, they can be too easily predicted……