Small Business Finance News
Fed Governor: Small Business Lending Climate Improving
Written by Jenna Weiner
Published: 7/14/2010
Fed Governor Elizabeth Duke tells CNBC small businesses having easier time gaining access to capital.
In a recent interview, a high ranking official from the Federal Reserve said that the climate for small business lending was slowly improving.
Speaking to CNBC, Fed Governor Elizabeth Duke said that banks were taking on more loans than before. She also said banks realized that future success depended on taking on more business loans.
"What's happening in the credit cycle is that banks are moving now from looking at collection problems to putting more loans on their books, which they need to do to keep income coming in over the longer term," Duke told the news source.
According to its governor, the Fed has held around 40 meetings with small business leaders, lenders and heads of nonprofit organizations in order to try to figure out how to get lending to increase. One way that banks are doing this, according to Duke, is by reviewing loan applications which had previously been rejected.
Duke made small business finance news recently after she said that the Federal Reserve had no plans to take additional steps to help the economy grow, according to Bloomberg. The senitment echoed many local Federal Reserve leaders, who said that no plans had been made despite the calls by some for the central bank to take action.
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