Credit rating of small business Affiliation This paper evaluates whether a bank should or should not grant a loanto a small business based on the credit rating. Specifically, it assesses if the bank should grant the loan to the small business if it has a bad credit rating. Evidence has been derived from peer reviewed scholarly articles in order to support the justifications. Profits are fundamental to any bank setting. Therefore, when a bank is evaluating whether to grant a loan or not, it assesses the risk associated with granting that loan. According to Stein (2004), banks frequently ask for a certain regulation for identifying a cut-off over which the loan will be given and below which it will not (Stein, 2005).

Introduction

Small businesses play an important role in the economy of many countries. More importantly, many of them rely on banks to finance their businesses. Granting of loans to small businesses is an intricate matter that requires the bank to gather information that helps it to assess the businesses’ ability to pay back the loan and not default (Frame & White, 2004). Hence, banks are resulting to using credit rating scores to determine if or if not to grant a loan to the business. The question is if bad credit rating means a bank should not grant a loan to a small business owner to expand or invest in his business? Why and why not?

According to Petrovic and Davidovic (2011), loan granting to small businesses poses a test to banks. However, banks should give loans to small businesses based on their credit rating. It has been found that small businesses having in-between credit ratings are likely to rely on loans from banks. Conversely, for small businesses that have low ratings, evaluation fails to avail reason to grant loans as they are thought to have nothing to lose if they default (Petrovic & Davidovic, 2011). The credit rating of a small business borrower functions to envisage future acts that the borrower will without evaluation. Hence, a bad credit rating will imply that the bank should not grant a loan to the business as the credit rating serves to predict the actions of the business after getting the loan. The credit rating obtained aids in the formation of the bank’s decision (Diamond, 1991).

On the other hand, bad credit rating should not be used to deny a small business a loan grant because banks do not have all the information concerning the borrower. Even if the bank obtains a good credit rating concerning the borrower that allows a bank to grant the small business a loan, the borrower may opt to default even if the business does well. A scenario termed as moral hazard. The bank’s loan policy may also be a factor in determining the type of borrowers the bank gets. The rate of interest banks charge on loans may draw low-quality borrowers, in which case the credit rating will be low (Inter-American Development Bank, 2004).

References

Diamond, D. W. (1991). Monitoring and Reputation: The Choice between Bank Loans and Directly Placed Debt. Journal of Political Economy, 99, 689-721.

Frame, W. S., & White, L. J. (2004). Emprical studies of financial innovation: lots of talk, little of action? Journal of Economic Literature, 116-144.

Inter-American Develpment Bank. (2004). Unlocking Credit: The Quest for Deep and Stable Bank Lending. Washington DC: IDB.

Petrovic, R., & Davidovic, M. (2011). Granting Loans To Legal Entities As The Banks Business Process. International Journal of Industrial Engineering Mnagement, 2(2), 69-76.

Stein, R. M. (2005). The relationship between default prediction and lending profits: Integrating ROC analysis and loan pricing. Journal of Banking & Finance, 29, 1213-1236.

The Rooseveltian Nation Ascendant The Rooseveltian Nation Ascendant Q1: What social policies and proposals were designed to restore men to their former position?

The unemployment rate of men who worked in the blue-collar occupations was relatively higher than that of women who mainly worked in white-collar occupations (Gerstle, 2001). Therefore, policies were initiated to combat the intruding of women on male’s breadwinning roles. First, several states passed legislations to outlaw hiring of married women. Second, the Social Security pension did not cover domestic servants, waitresses and other female occupations to reduce their work coverage. Besides, a majority of commentators proposed ludicrous gender solutions to the challenge of unemployment. For instance, the Norman Cousins suggested that the depression of the unemployment among men could be ended by firing ten million working women and issuing their jobs to men (Gerstle, 2001, p.178). The labor movement made a significant celebration and the protection of male wage earner and its principal goal. Finally, there was the exclusion of inferior groups from the national community to erase any marker of their presence, for instance, women were to be excommunicated from work and other key nation positions.

Q2: Which threats hindered the achievement of social rights by all Americans?

The task or duty of ensuring that the American citizens had access to social rights was incomplete because of some factors or threats. First, the amalgamation of conservative patriotism around Dies and the congressional supporters depicted communism instead of unregulated capitalism (Gerstle, 2001, p.186). Communism was the nation’s worst enemy, and it identified a new deal as an emergent dictatorship. Second, the survival of a radicalized nationalism continued to define America as a society whereby some races are better compared to others. High levels of discrimination hindered utmost achievement of social rights among all Americans.

References

Gerstle, G. (2001). American Crucible: Race and Nation in the Twentieth Century. Princeton University Press.

Discussion: Cognitive Behavioral Therapy: Family Settings Versus Individual Settings

Whether used with individuals or families, the goal of cognitive behavioral therapy (CBT) is to modify client behavior. Although CBT for families is similar to CBT for individuals, there are significant differences in their applications. As you develop treatment plans, it is important that you recognize these differences and how they may impact your therapeutic approach with families. For this Discussion, as you compare the use of CBT for families and individuals, consider challenges of applying this therapeutic approach to your own client families.

Learning Objectives

Students will:

• Compare the use of cognitive behavioral therapy for families to cognitive behavioral therapy for individuals
• Analyze challenges of using cognitive behavioral therapy for families

• Recommend effective cognitive behavioral therapy strategies for families

To prepare:

• Review the media, Johnson Family Session 3, in this week’s Learning Resources and consider the insights provided on CBT in family therapy.
• Reflect on your practicum experiences with CBT in family and individual settings

QUESTION

Post an explanation of how the use of CBT in families compares to CBT in individual settings. Provide specific examples from your own practicum experiences. Then, explain challenges counselors might encounter when using CBT in the family setting. Support your position with specific examples from this week’s media.

QUESTION

Post an explanation of how the use of CBT in families compares to CBT in individual settings. Provide specific examples from your own practicum experiences. Then, explain challenges counselors might encounter when using CBT in the family setting. Support your position with specific examples from this week’