Tightening Credit Requirements
As banks look at their bottom line from the recent mortgage issues, there has been a ripple effect that reaches to small business owners.
The Federal Reserve this week surveyed U.S. banks and found that one third of them have recently tightened their lending standards for loans to small businesses. The Fed data shows that many lenders, nervous about their bottom line, have increased their credit standards for small business loans at a rate not seen since September 11, 2001, making it harder and more expensive for small businesses to get loans.
Read more
