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More than two-thirds of business owners
surveyed by the bank said they had taken steps to prepare for an
economic downturn, including setting cash aside or planning to
reduce expenses.
Of the 69 percent of owners who had started preparing for a
recession, only 19 percent had opened a line of credit, a figure
that Bank of America's head of small business Sharon Miller said
was too low.
"When you need a line of credit, you often can't get one," she
said in an interview. "Business owners should be thinking about
that now."
There was less optimism about the U.S. economy than last year,
the survey showed. Forty-eight percent of business owners felt
the national economy would improve over the next year, down from
55 percent last fall. Concerns about healthcare costs and the
impact of trade wars contributed to declining sentiment.
Although the bank said it is important for businesses to be
ready for a potential downturn, top executives pointed to growth
in consumer spending and low unemployment to show the economy is
still in good shape.
"We continue to see a good, strong solid U.S. economy," said
Chief Executive Brian Moynihan on a conference call earlier this
month.
The Charlotte-based bank is looking to grow its unit that caters
to businesses with fewer than 100 employees and less than $5
million in revenue by putting small business specialists in each
of Bank of America's financial centers, Miller told Reuters.
Bank of America currently employs about 2,300 business
specialists and has about 4,300 branches.
Earlier this month, the second-largest bank by assets announced
plans to expand its branch and ATM network to cover more than 90
percent of the U.S. population by 2021.
(Reporting by Imani Moise; editing by Bernadette Baum)
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