Business Journals article by Kent Hoover
The Fed's survey prompted Sen. John Kerry, D-Mass., to call on Congress to pass legislation that temporarily would reduce fees on Small Business Administration loans.
Through May 2, the number of 7(a) loans approved by the SBA was down by more than 19 percent this fiscal year compared with the same period a year earlier. Government-guaranteed 7(a) loans are a popular source of working capital for many small businesses because of their long terms and low monthly payments.
The agency's 504 loans, which businesses use for real estate and other fixed assets, were down 6 percent compared with the same period a year earlier.
Kerry, who chairs the Senate Small Business and Entrepreneurship Committee, said the Fed's lending survey "underscores the need to pass my legislation to lower fees and stimulate lending for the largest source of new jobs: America's small businesses."
To read the rest of this article, please click here.