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Doing Business
With Some Cities May Be Bad For Your Small Business Health |
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 The
city of San Bernardino, California is in financial trouble
and has filed for Chapter 9 bankruptcy protection. On
Tuesday, the city council voted for the measure.
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San
Bernardino is a city of 210,000. It is located near
Los Angeles. San Bernardino is the fourth city this
year to file for bankruptcy. Others include Stockton,
CA and Mammoth Lakes, CA and Scranton, PA. |
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If you're a
small enterprise doing business with the cities in financial
trouble such as San Bernardino could be bad for your
small business health. There is the likelihood that
you may not get paid in a timely manner for the services
you've rendered.
Cities in
financial trouble tend to reduce hiring of vendors and delay
payments to those vendors whose services they must retain. |
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The City is
in debt by $1.2 million and has less than 60 days of
operating cash on hand. It has already reduced the
salary of city workers such as firefighters and police to
minimum wage standards. |
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According to
the City Manager, Andrea Travis-Miller, the city will
continue to meet its financial obligation to its vendors,
creditors and employees and will continue to do so over
time. |
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Sources:
The Wall Street Journal
The Los Angels Times
The City Council of San Bernardino
By
Tim Miller |