Is Weak Economy Effecting New Coffee Construction?

The price of gas is at an all time high, new home construction is the worst in years, and the financial collaspe of a major investment firm may be factors in the slow down in new retail businesses, like coffee stores, opening across the nation.

Fear of a recession and possibly a depression has banking institutions tightening their criteria on who receives financial approval for their projects. Many first time investors are seeing their source for funding drying up at an alarming rate.

These tighter restrictions are being felt by entrepreneurs nationwide looking to open a business or franchise. The growth projections of the economy has long been gauged to new homes and business openings, but now the experts have cause to be concerned. The cost of doing business has just gone up. Gas to deliver goods and materials is causing many business to file bankruptcy, lay off staff and/or close their doors. Most businesses are feeling the effect of higher gas prices, causing many companies to up their prices for goods like wheat, milk, construction material, coffee, and a host of other products which is then passed onto the end user.

President Bush's economic stimulus package may not be enough for businesses like construction, transportation and service oriented businesses to keep their doors open. The $1200.00 for married couples, $600.00 for individuals package may not be enough to help these struggling industies to stay afloat.

Commercial lending institutions are being more selective in which projects they will fund. For the small town entrepreneur, this selection process may not include their dreams of living the American Dream.