COLUMBUS, Ohio -- Local banks were given millions of tax dollars to help ease the burden of bad debt and get money flowing into the economy again, but local small business owners said that despite the handouts, the credit crunch has not completely eased up yet.
At least 14 banks have received funds from the Troubled Asset Relief Program (TARP).
Fifth-Third Bank received more than $3 billion. KeyCorp received $2.5 billion and Huntington Bank received more $1 billion.
One goal of TARP is to get banks to start lending again, but it isn't always easy, NBC 4's Tanya Hutchins reported.
Spinelli's Deli had a good year in 2008 as business was up 10 percent over 2007. But 2009 is proving more challenging. So when the company president tried to consolidate and modify his loans, he had a difficult time.
"Over the years, we've borrowed from different institutions to grow our business and what I was trying to do was consolidate all of my debt into one payment and try to lower my payment," said Joe Spinelli, owner of Spinelli's Deli.
Three years ago, Spinelli and his partner borrowed $100,000 from Charter One. They only owe $30,000 more. They've paid on time every month, so Spinelli said he was surprised when he was turned down by Charter One and National City Bank.
Neither bank would comment on Spinelli's specific case.
"It makes me feel angry because I'm just trying to ask for a little help," Spinelli said. "Charter One actually told us they would only work with us if we were in default!"
Michael Van Buskirk is president of the Ohio Banker's League and said banks look at business plans, financial statements and the current economic climate.
"If you go into a bank and for whatever reasons, they can't do what you want them to do, don't assume that will be the answer you get from all banks," Van Buskirk said.
He said he encourages business owners to shop around. Spinelli said he's doing just that -- and writing to public officials.
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