Policymakers must also focus on the small business sector during credit crunch

David Schroeder, president of the American Enterprise Bank, speaking on behalf of the Independent Community Bankers Association, says that “policymakers must also focus on the needs of the small business sector during this economic slowdown.” He says Small Business Administration (SBA) loan programs should “bolster small business credit in economic slowdowns,” but instead the number of SBA loans being made is plummeting. (0:26)
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Credit becoming harder to access, and more expensive, for small business

Chairwoman Melissa L. Bean (D-Ill.) of the House Small Business Subcommittee on Finance and Tax says that as banks and other institutions struggle, they are pulling back on lending, which makes credit harder to access for small business. She quotes a survey that says one-third of small business owners find credit more costly, less available, or both. (0:46)
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