Small Business, Wall Street’s Woes and Getting Credit

I spoke with a Wall Street Journal reporter on Monday about the potential fallout for small business from this latest mess on Wall Street.

The article (“Small Firms See Financing Getting Harder”) spells out some of the potential troubles entrepreneurs and small businesses face. The general sentiment is captured by the following:

The financial crisis is the latest blow to small businesses, which have suffered through a tough year. As consumers pulled back on spending, these companies have faced more-stringent requirements from bankers, higher rates on credit cards and other loans, and the loss of funding sources from real estate, such as home-equity loans. Now, the environment looks grimmer. Small and midsize companies are likely to see tougher requirements from their bankers in coming months.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council