Access to credit enables businesses to smooth income streams and take advantage of growth opportunities. Without credit, a business may be forced to cut production or restrain growth. If credit constraints affect businesses across economic sectors, the result could be widespread declines in production and employment. Since the recession started in 2007, there has been a growing concern that small businesses may lack adequate access to credit. This Economic Brief examines the complexity of small business credit issues.
Addressing the Financing Needs of Small Businesses, Forum held by the Federal Reserve System Board of Governors in July 2010
Bucks, Brian K., Arthur B. Kennickell, Traci L. Mach, and Kevin B. Moore, "Changes in U.S. Family Finances from 2004 to 2007: Evidence from the Survey of Consumer Finances," Federal Reserve Bulletin, February 2009.
Dennis, William J., "Small Business Credit in a Deep Recession," National Federation of Independent Business, February 2010.
Dunkelberg, William, and Holly Wade, "NFIB Small Business Economic Trends," National Federation of Independent Business, January 2011.
Senior Loan Officer Opinion Surveys on Bank Lending Practices, Federal Reserve System Board of Governors
Year-End Economic Reports, National Small Business Association