Small Business Finance News

Fed To Hold Meeting On Bank Lending To Small Business

Written by Jenna Weiner
Published: 7/8/2010

A forum on how to increase loans to small businesses will be hosted by the Federal Reserve.

The Federal Reserve is tackling one of the most pressing issues for small businesses today - not enough access to lending.

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The Fed announced recently that it would be holding a forum with representatives from financial institutions, trade groups, small businesses and others in order to find out where the issues lie, the Associated Press reports.

While the lack of funding doesn't come as news for small business owners, the Fed will try to pin down the source of the problem.

The question of who is to blame for the lack of credit flow is stumping even the most high-ranking government officials.

Ben Bernanke, the Chairman of the Federal Reserve, recently said it was not obvious who was to blame for the decrease in lending - whether it was a shortage of demand or more cautious banks - the news source reports. In the past few months, the Fed is on record as encouraging banks to loan money to small businesses.

The former head of the Federal Reserve, Alan Greenspan, was in the news recently after giving an interview to a cable channel. When asked about the ongoing issues related to unemployment, he responded that "people [didn't] want to hire because they're terribly concerned they [will] have to let them go."

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