However, this is not the end of the bank’s problems as they need another $700 billion to pay next year’s debt. In the end, if CIT does go out of business, their debts may be sold to the largest banks in the country. Small business owners would have additional funding through the Small Business Administration which will be guaranteeing small business loans beginning at the end of the month. Additionally, the Treasury Department has funding to buy up business loans.
As discussed in a previous post, there are other options available for small business owners who will be affected by CIT’s financial woes.