Federal Reserve Exploring Ways to Improve Lending to Small Businesses

By | September 24, 2010

Federal Reserve said that it would hold a forum to explore ways for improving the lending to small businesses.

New methods are being applied by Congress and White House in order to increase the lending to small businesses.

Unlike the big companies, small businesses only rely on bank loans for expanding their operations and hiring. There is decrease in hiring by small businesses as an impact of tight credit. The increase in credit for the small businesses will increase the prospects of job creation during the recoveries. The bigger companies have been capable to tap the credit markets and even the equity markets. It is harder for small business companies who depend only on bank loans for all their financing.

The Federal Reserve has announced that it is going to hold a small business conference in July. Small business people, financial institutions, trade groups and other experts in the field will be among the participants.

$30 billion aid package was designed to increase the lending to small businesses by the Obama administration.

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