Escaping the Home Equity Fallout

What does the national decline in real estate have to do with your small business? A lot more than you might think, says business strategist Rhonda Abrams in a USA Today column.

In September, the Commerce Department reported that the median price for a new home had dropped by 9 percent from last year's figures, the biggest plunge since 1970. New home construction is also declining, according to the Commerce Department.

This means that it will be more difficult to borrow against home equity, which small-business owners often do to finance start-ups and expansions. With home equity falling, consumers will also be less inclined to spend money on products and services or use home equity loans to pay for remodeling projects.

Check out Abrams' column for financial precautions you can take to prepare for the home equity fallout and its effect on the economy.