Bernanke Calls Again For More Small Biz Lending
Fed chief describes process as “crucial to our economic recovery”
Small businesses that are in need of loans will receive them – or at least become more likely to receive them – if Federal Reserve Chairman Ben Bernanke has his way. Bernanke stressed the importance of supporting small businesses earlier today.
Bernanke acknowledged this morning that there’s a cause and effect relationship between the availability of money and the possibility of success. He admitted, too, that the current state of things isn’t exactly great.
Specifically, Bernanke stated according to Tom Barkley, “The formation and growth of small businesses depends critically on access to credit. Unfortunately, those businesses report that credit conditions remain very difficult.”
Then here’s the key part: Bernanke also said, “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.”
So again, let’s hope all of the right people are listening and follow Bernanke’s recommendations. Preferably while not increasing the national debt and/or making the U.S. enter another cycle in which loans are way too easy to obtain. Another recession wouldn’t do anyone much good.
As always, we’ll see what happens.