Increased small business lending crucial to startups

Federal Reserve Chairman Ben Bernanke says that increased lending to qualified small business owners and entrepreneurs will be “vital” to help continue the economic recovery.

Speaking in Detroit, Bernanke said that while lawmakers have stabilized the financial system, unemployment remains a major concern. He said that increased lending to small businesses and new business incorporations was “crucial to creating jobs and improving employment security.”

He said that the Federal Reserve would continue to examine the flow of credit and work to increase funding for small businesses. Bernanke also added that decreased lending was partially due to reduced demand from qualified small businesses, and was not completely caused by tighter bank lending practices.

Small businesses have continued to fund modest job growth over the past few months. A recent Intuit study found that small business created 25,000 new jobs in May, and have created 240,000 jobs since October 2009.

Entrepreneurs are also growing increasingly optimistic about the recovery. Nearly 80 percent of small business owners say they feel the economy is holding steady or improving.ADNFCR-3052-ID-19817650-ADNFCR

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