More grim credit news from the Fed

Posted by: John Tozzi on August 12, 2008

The Fed released its quarterly survey of senior loan officers (PDF) yesterday. The news is not good for small business borrowers: 65 percent of banks surveyed tightened their lending standards for small firms in the past three months. That’s up from 52 percent in the Fed’s April survey.

Many also tightened the cost of credit lines, raised interest spreads on loans, and raised premiums on risky loans. Banks cited economic uncertainty and lower tolerance of risk among other factors for tighter credit.

Bottom line: fewer loans for small companies at higher costs.

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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