Small Business Finance News

Federal Reserve Governor Sees Small Business Optimism Rising

Written by Jenna Weiner
Published: 4/14/2011

Elizabeth Duke cites numerous surveys to back up comments on increasing small business optimism.

Following the lead of other government officials, including U.S. Treasury Secretary Timothy Geithner and Small Business Administration head Karen Mills, Federal Reserve Governor Elizabeth Duke recently espoused her belief that credit conditions are improving for the small business sector.

Federal Reserve Governor and Small Business Optimism

To back up this assertion, Duke cited instances of increasing corporate bond issuance, commercial mortgage-backed securities and student and commercial loans, as well as anecdotal evidence, during a speech to the International Factoring Association on Thursday.

She further noted surveys, such as the Survey of Consumer Finances, to show that in many cases a lack of credit is due to small businesses' own fear of rejection, as the research found that more than 90 percent of respondents received as much credit as requested, according to Market News.

"Small businesses are central to creating jobs and to restoring our economic prosperity. The economic importance of small businesses is due in part to the fact that about one half of all Americans are employed by firms with fewer than 500 employees," Duke said.

Recent small business news would paint a different picture, however. This week, the National Federation of Independent Business, a traditionally conservative group, reported that small business optimism fell 2.6 points in March to 91.9.

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