Owning a small consulting business myself, I know CBT (Community Bank and Trust)….recently seized by the FDIC and turned over to SCBT (South Carolina Bank and Trust), is not making SBA backed loans even. Nor is my other bank, which I just closed all accounts with, Chase Bank.

I’ve done contract work for Regions Bank twice, and thought I’d have to kidnap Bank Managers to get paid. They are infamous with contractors for not paying their bills in a timely manner….but I’ve overheard other businessmen stomp out cursing after being turned down by Regions for small business loans.

Today is Feb. 22nd, the day new banking regulations take effect, particularly for credit card issuers. This is the reason I closed my Chase Bank Visa credit accounts. They sent me the new “Card Members” agreement that basically stated: “Your interest rate and service fees will remain the same on existing balances, but we reserve the right to set any APR or Fees at our discretion and may or may not notify you”.

Although I’ve had mostly a good relationship with them, I did get raped in fees by this bank. When the feds seized CBT in NE Georgia recently, I had issued electronic payments from CBT to Chase to pay off my credit card balance. The delays caused in transmitting the funds from CBT made my payment to Chase late by several days.

Chase in their wisdom, Charged me $39 late fee…..which also push my balance about my credit limit, then charged a second $39 “Overage Fee”.

They claimed they would waive it after I provided proof of the transaction being late due the FDIC. It never happened and I had to pay it.

I see the credit card companies getting worse now toward their customers. This was my last option for small business loans via credit.

Now you may think, SO WHAT? Well even for me when I’m working a project for a client, I will sub contract to other IT engineers or security personnel for Jobs I need help with.

Most want to be paid after the job is finished, or weekly or bi-monthly if something long term. I can’t make payroll if the client hasn’t paid me…..back to Regions Bank that always takes 6-7 months to pay contractors.

Often times, and that includes me, I can’t hold off my creditors and other bills for months at a time while waiting to be paid, nor can the average working man or woman unless they dip into a hidden nest egg of money.

So when the banks don’t loan, I don’t hire extra help, and they cause harm to the economy further. It doesn’t matter to them that your credit is spotless, you’ve always paid on time, and rarely to never missed any payment. They just don’t loan.

So I see no reason to continuing putting my money in a bank that refuses the needs of it’s customers. Now it’s cash upfront with me or Money Orders. I’ve become reluctant to accept checks. Cashing a Commercial Check at Bank of America (or is it Bank of China now?), if you don’t have an account with them, even checks on their bank, you will pay $6 per transaction on each check.

This is true with most banks. So I will not accept checks from most commercial businesses that do not direct deposit. They must pay me in cash, Money Order, or LOCAL issued Cashier’s Check.