Small Firms Find Credit Is Tightening

By ELIZABETH OLSON
The New York Times
Lenders’ credit woes are starting to take a toll on small businesses.

Though it may be too early to determine how hard small businesses will be hit, some national surveys show that the businesses are encountering more restrictions at lending institutions, making it harder to get the credit necessary to expand or, in some cases, stay afloat.

Last month, a Federal Reserve report found that a third of banks in the United States had tightened their lending standards for small-business loans.

Soundings of business owners themselves are mixed because credit availability is not uniform across the country. More than half of those responding to the National Small Business Association’s online poll two weeks ago replied “yes” when asked whether their business had “been impacted by the credit crunch in recent months.” But another group, the National Federation of Independent Business, said that more than a third of the members responding to its February survey said they were borrowing normally, and only 4 percent said there was a problem getting a loan ... Read the Entire Article