More than three-fourths of American businesses have fewer than 10 employees and another nearly one-fourth have between 10 and 500 employees. 1 In addition to constituting the vast majority of firms in the United States, small businesses account for about one-half of privatesector employment. 2 And small firms, especially new small firms, are an even greater source of net new jobs in our economy.
The present value of what the bank can hope to recover is a pittance. This skews bargaining power towards the borrower who can command the finest legal brains to work for him in repeated appeals, or the borrower who has the influence to obtain stays from local courts – typically the large borrower.