I should also mention that another friend of mine underwrites credit card applications (I thought computers do the approving but apparently this bank does them all manually). They won't approve credit cards for small business owners and I don't mean credit cards in the business's name, but in the owner's name. I asked how that could be and he said because people that own a business are far more likely to default on debt than a typical consumer. These wasn't his opinion, but rather the banks position. I can't finger the name of the bank here but they are big.

The consensus I hear in the banking world is that small business owners default much too often for anyone to get comfortable with.