Bernanke Says Aid to Small Businesses is 'Crucial' to Economic Recovery
Tweet
Share
E-mail
Federal Reserve Chairman Ben Bernanke, posing a vital policy change, said on Monday that boosting credit to struggling small businesses is going to be “crucial” to the forward momentum of the economic recovery.
"To support the recovery, we need to find ways to ensure that credit-worthy borrowers have access to needed loans," Bernanke said at a Fed-sponsored conference aimed at discussing small business financing.
The meeting was the final of more than 40 meeting designed to gather information that will aid the country in overcoming the obstructions blocking lending.
The economic recovery from the recession has caused a continued drop in bank lending, as total loans held by banks dropped by 5 percent in 2009 and has continued to fall off this year, according to recent reports from Fed officials.
“Making credit accessible to sound small businesses is crucial to our economic recovery and so should be front and center among our current policy challenges,” said Bernanke. “Our message is clear: Consistent with maintaining appropriately prudent standards, lenders should do all they can to meet the needs of creditworthy borrowers.”
Banks are witnessing a time of lower loan expected demand, restrictive credit availability and weakened financial state of small businesses following the recession.
Legislation is being pushed right now by the Obama administration to create a $30 billion government fund for small businesses, but the bill’s fate in Congress remains uncertain as lawmakers are nervous about adding to the enormous federal deficit.
The Fed is expected to make public this week its projections for growth and inflation, and many observers expect the forecasts to be lowered.
"To support the recovery, we need to find ways to ensure that credit-worthy borrowers have access to needed loans," Bernanke said at a Fed-sponsored conference aimed at discussing small business financing.
The meeting was the final of more than 40 meeting designed to gather information that will aid the country in overcoming the obstructions blocking lending.
The economic recovery from the recession has caused a continued drop in bank lending, as total loans held by banks dropped by 5 percent in 2009 and has continued to fall off this year, according to recent reports from Fed officials.
“Making credit accessible to sound small businesses is crucial to our economic recovery and so should be front and center among our current policy challenges,” said Bernanke. “Our message is clear: Consistent with maintaining appropriately prudent standards, lenders should do all they can to meet the needs of creditworthy borrowers.”
Banks are witnessing a time of lower loan expected demand, restrictive credit availability and weakened financial state of small businesses following the recession.
Legislation is being pushed right now by the Obama administration to create a $30 billion government fund for small businesses, but the bill’s fate in Congress remains uncertain as lawmakers are nervous about adding to the enormous federal deficit.
The Fed is expected to make public this week its projections for growth and inflation, and many observers expect the forecasts to be lowered.
You May Also Be Interested In
- Reddit (RDDT) added to S&P 500
- Planet Green halted again, now up 793%
- Avalonbay Communities (AVB) dropped from S&P 500
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkRelated Entities
Ben S. Bernanke, Barack ObamaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
