EAGLE ROCK, California – Small business owners are having a hard time getting a bank loan to aid their struggling firms.

Jonson Mallari owns a struggling business, a Sign-O-Rama franchise. In the 6 years since he owned the business, he has done large contracts that included putting signs on buildings, cars and buses.

“We felt that about 3 years ago. All of a sudden somebody turned off the switch,” Mallari said.

Now, he said he is lucky when customers ask for small jobs.

“Our sales people could not sell so we had to let them go one at a time,” said Mallari.

According to a new study, about 90% of small businesses say banks are rejecting their loan applications. Most lenders say they reject many small businesses simply because they might not get their money back.

An active member of his local chamber of commerce, Mallari said the loss of business and the inability to get new loans has led to at least a dozen businesses in his area shutting down since the recession began.

“It’s difficult when you don’t have money. How can you pay people to work?” said Mallari.

Unable to get more bank loans, Mallari has searched for ways to cut costs. His staff of 8 was the first casualty. It’s just him and his wife Yvonne running the business now.

Meanwhile, Mallari is working on his back up plan—a termite control business. Balitang America