Tags: US | Fed | Small | Business

Regulators Urge Loans to Creditworthy Small Firms

Friday, 05 Feb 2010 10:09 AM

Regulators are urging banks to make loans to creditworthy small businesses, a move that would support the economic recovery.

Small businesses have had an especially hard time getting loans. That has crimped their ability to expand operations and hire. Small businesses usually help drive job creation during recoveries, but credit clogs have hurt hiring.

In a joint statement Friday, regulators including the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency — said that banks that engage in "prudent small business lending after performing a comprehensive review of a borrower's financial condition will not be subject to supervisory criticism for small-business loans made on that basis."

Regulators said they recognize the "important role" small businesses play in the economy and the "difficulty" they are having obtaining or renewing loans.

The Obama administration does as well and has stepped up efforts on this front.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
1Like our page
2Share
Headline
Regulators are urging banks to make loans to creditworthy small businesses, a move that would support the economic recovery.Small businesses have had an especially hard time getting loans. That has crimped their ability to expand operations and hire. Small businesses...
US,Fed,Small,Business
149
2010-09-05
Friday, 05 Feb 2010 10:09 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved