Skip to comments.Small companies denied credit as big firms thrive
Posted on 07/12/2010 5:00:43 PM PDT by NormsRevenge
WASHINGTON Big companies are building up cash and are expected to report strong earnings starting this week. Not so for small businesses that can't get loans or hire freely until they do.
The gap helps explain why the economic rebound isn't stronger and could even stall. Federal Reserve Chairman Ben Bernanke stepped up pressure Monday on banks to break the logjam and lend more to smaller firms, which employ at least half of American workers.
Small business owners are relying on personal credit cards or raiding retirement accounts to stay afloat, the Fed chairman said.
Bernanke and other regulators have urged banks for months to lend more to smaller companies. Lawmakers have complained that small businesses that want loans are having trouble getting them. Banks have countered by saying demand remains weak.
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Wouldn’t this also be called Obama in bed with fatcats?
I am in no way educated in finance but once they started tightening up the credit the small businesses were screwed.
A lot of them depend on credit in order to run their business and pay their bills at times. Now that those bills may be not getting paid then their business’s credit will get bad making it harder to get credit in the future even when it credit is more available.
I guess if your a minority you wont have a problem even with bad credit. The Gubment will guarantee your loans and credit.
And what do you think the Financial reform bill without any reform is all about. Suffocating small business with federal paperwork and regulation, until they give up.
Obowma shutting the American economy down.
My experiance lead me to feel they were out to get rid of small business for at least the past 15 years and probaly longer
Because they take the pessimistic view, and think the loan applicant will not be able to pay it back.
The small business owner always believes his business plan will work, but he is an interested party.
Big companies are getting bailouts if they go under. So big companies are a sure thing. Banks are losing so much money on home loans lately they can’t afford to lend to anything but a sure thing anymore.
small business is the ultimate check on centralized fascism. Of course they will shut it down...so some big fascist outfit can try to grab the opportunity. Only thing is.. they always cock it up and make a mess of it. Which is why, in the right economic climate, there always is some opportunity for small business.
this is what I am experiencing