Small businesses continue to have extreme difficulty getting loans, or if they do, they have to pay more for them. In banks’ defense, some companies seeking loans right now are not too creditworthy, and those creditworthy are not seeking loans. It is a catch-22.
Moreover, even creditworthy firms have had their existing credit lines decreased during the Great Recession. This is another Catch-22. Until credit is a little easier to come by for credit worthy firms, we may be stuck in the current economic doldrums.
