The Small Business Credit Crunch Intensifying

The economic debacle over the last two years is still having serious ramifications upon small businesses, as this important component of the economy is finding it increasingly harder to gain access to loans. While the overall credit conditions have improved since the height of the financial crisis, the small business credit crunch continues to deepen.

According to a Treasury report released late Tuesday, the 22 nation’s largest banks that got the most help from the TARP programs have cut their small business lending by a collective $11.6 billion since April.

The banks’ total lending has fallen 4.3% in that six-month period, to $257.7 billion.

Graph: CNN Money

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1 Comment on The Small Business Credit Crunch Intensifying

  1. When will small businesses be bailed out? We need to at least be able to build strong business credit once the crunch is over it will come in handy.

    Rina
    Initial Underwriting Group

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