Credit Crunch Hitting Small Businesses Hard

David — Fri, 16 Jul 2010 01:26:32 +0000

Only half of small businesses that tried to borrow last year got all or most of what they needed, while in the mid-2000′s 80% got the loans they needed, according to the National Federation of Independent Businesses.Â Â As reportedÂ by Emily Maltby in the 6/21/2010 “Wall Street Journal,” possible explanations range from over-zealous bank examiners to small business owners turning more cautious in the face of a weak economy.Â In mid-June, the House passed a $30 billion initiative for community banks to borrow from the government’s TARP fund at low rates, which may help stimulate small business lending, if and when the Senate passes the bill.

Even without passage of the initiative, “community banks are still lending,” notes Wharton lecturer and small business expert Robert Chalfin.Â Community bank loans to small businesses are only down slightly in 2009 to about $680 billion outstanding, from about $700 billion in 2007, according to the Bureau of Labor Statistics and the American Bankers Association.

Rudofsky Associates » Robert Chalfin

Credit Crunch Hitting Small Businesses Hard