Bernanke Says Borrowing ‘Very Difficult’ for Small Businesses

Federal Reserve Chairman Ben S. Bernanke said small businesses are having a tough time getting loans they need to expand or stay afloat and keep the U.S. economic recovery going.

Some “creditworthy” firms with “strong” cash flows and a decline in collateral values are have trouble getting loans, Bernanke said today in opening comments in Washington to a Fed- hosted conference on efforts to reverse a drop in lending to small businesses. The forum caps more than 40 meetings the Fed has held around the U.S. since February.

The central bank chief is increasing pressure on lenders to expand credit to help boost U.S. growth and employment after a report this month showed private employers added fewer workers to payrolls in June than forecast. Banks’ loans to small businesses fell to $670 billion from $710 billion over the past two years, Bernanke said, citing government data.

Read Full Article from BusinessWeek

- Posted: 2010-07-12 09:41:27

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