The recession and the reluctance of the banking industry, as a whole, to make loans to businesses because of the banks’ own financial difficulties has forced cash starved small businesses to look for other sources of cash. Oftentimes, small business owners are tempted to look to their retirement accounts as a source of funds. However, there are many adverse consequences that can result from that approach. 

Recent stock market conditions, particularly the volatility of the markets, during the last year have no historical precedent.