Insights into the world of small business lending and development
America Loves Startups -- It's Just Not so Crazy About Financing Them
Small businesses, ultimately, are people with goals and values that can't be calculated on a profit-and-loss statement, a nominee for a high-level post in Donald Trump's administration observed during a confirmation hearing. If they could be, it might be considerably easier for them to get the credit they need to add workers, buy inventory or simply stay afloat in the window between product delivery and customer payment. Instead, according to a report by the country's 12 regional Federal Reserve banks published on Tuesday, Aug. 8, more than half of the startup firms that play an outsize role in U.S. job creation and innovation struggled to get loans. As a result, some 81% dipped into their personal funds to bridge the gap.