The Small Business Lending Crisis

Small businesses, especially new ones, are the primary source of new jobs and innovations in the American economy. For that reason, economic growth depends on a constant stream of new businesses with new ideas. However, since the financial panic of 2008 to 2009, small businesses have found it difficult to borrow despite a growing mountain of excess banking reserves. Why is this the case? What are the implications? What can and will be done to resolve it? We'll explain.

As we highlighted in our May 2013 issu.....

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