July 17, 2010
Small business urgently needs access to credit and still cannot get loans. Small business will be essential to our economic recovery.
Our elected officials and financial institutions must acknowledge this and take quick and decisive action. Returned TARP money should be made available for small business loans.
New York Times reporter Sewell Chan reported that, “Small businesses â€” those having fewer than 500 employees â€” employ half of all Americans and account for about 60 percent of gross job creation. Federal data indicate that lending to such companies fell to below $670 billion in the first quarter of this year from more than $710 billion in the second quarter of 2008.
“The reasons are unclear. Many entrepreneurs say that bank loan officers are denying loans to creditworthy borrowers as part of an overreaction to the bad loans of the last economic expansion and heightened scrutiny by regulators.”
To read the full article by Sewell Chan go to: Small-Business Lending Is Down, but Reasons Still Elude the Experts