SAN JOSE, Calif. — For many small businesses, a lack of cash flow has become such an issue that financial institutions like Meriwest Credit Union are encouraging owners to consider "loan workouts."

The arrangement is an attempt at renegotiating a loan. The lender and the borrower have to come to an agreement that is mutually beneficial. During the process, interest rates, payments, and the loan term, goes on the table for modification.

"Over the past year, we have had discussions with a couple of borrowers regarding their loans. We were successful in providing direction to the borrowers to help them keep their loans current," said Greg Meyer, community relations manager at $1.3 billion Meriwest.