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Credit crunch hits small firms

Dec. 1, 2008, DETROIT – Ann St. Peter, who owns Pinwheel Bakery in Ferndale, Mich., always figured
that people would cut out the $100 dinners at fancy restaurants in
trying economic times. But when she opened her bakery about 18 months ago, she never imagined
that colorful cookies and cupcakes could get crushed, too.

Dec. 1, 2008, DETROIT – Ann St. Peter, who owns Pinwheel Bakery in Ferndale, Mich., always figured
that people would cut out the $100 dinners at fancy restaurants in
trying economic times.

But when she opened her bakery about 18 months ago, she never imagined
that colorful cookies and cupcakes could get crushed, too.

"People are scared and freaking out – and really holding onto their pennies," said St. Peter, 40.

Her
neighborhood bakery sales fluctuate day-by-day with the economic
headlines. She's tried for months to get her banker to understand. The
bank eventually agreed to let her pay just the interest on her
small-business loan but only for three months, not the six she wanted.
The three-month break ends in January.

Welcome to one bakery's corner of the credit crunch. | FULL STORY