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Gen Bus Nov 2013 - "Small Business Loans and Economic Recovery"

Gen Bus Nov 2013 - "Small Business Loans and Economic Recovery"

Gen Bus Nov 2013 - "Small Business Loans and Economic Recovery"

Excerpt


Small Business Loans and Economic Recovery


Overall, large businesses have performed well over the past few years. This is in no small part due to the support received from the Federal Reserve in the aftermath of the financial crisis. Small businesses on the other hand are barely growing at all. This is a serious problem because small firms account for about half of GDP and employ the majority of the workforce. Furthermore, most small businesses employ fewer than 10 employees, thereby limiting their financing sources to either the owners’ capital or bank financing.


 


 




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