I know we are talking about a different scale here, but the idea that you must be in the black to get money simply isn't true. And if you are hold small town businesses to a different standard, then you just proved the point of the article.
There's a pretty big difference between a diner in a small town and a global media/technology company. Both could be unprofitable, but only one has large potential upside in terms of both profit and business exit.
And that would matter to a VC. But a bank isn't looking for a big exit... just to get their loan back with some interest payments. Which is why they consider not only the business itself, but the credit history of owners, and their assets.
I know we are talking about a different scale here, but the idea that you must be in the black to get money simply isn't true. And if you are hold small town businesses to a different standard, then you just proved the point of the article.