Want a loan? Hit the plastic

On Monday Federal Reserve Chairman Ben Bernanke took up the growing issue of lack of lending to small businesses by banks, and the havoc it’s causing in the economy. Lending to small businesses contracted by $40 billion for the first quarter of 2010 as compared to 2008. Only a third to half of small businesses were able to secure a loan or line of credit in 2009. And Small Business Administration lending all but disappeared in June, thanks to the end of a popular stimulus program. considering of the dry-up, Bernanke said small businesses “have had difficulty obtaining the credit that they need to expand and, in some cases, even to continue operating.”

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