The Credit Squeeze Continues For Small Businesses

Source: Created from data from the Federal Financial Institutions Examination Council

In a past blog, I detailed how small businesses have had a difficult time obtaining financing throughout this economic crisis. Statistics have consistently shown that financial institutions have decreased their lending to smaller businesses significantly as compared to larger companies. A recent survey by the National Small Business Association confirms that this squeeze continues in the small business community. Almost half of the respondents said that in the past four years they were unable to find financing. As a result of this, some of these companies had to eliminate staff, reduce employee benefits, and have not been able to meet demand for their products and services. In addition, many small companies have had their existing credit decreased and some have even had their loans called in early. This article from Proformative explains the results of this survey in greater detail.

Image Source: Smallbiztrends.com