Small business owners are feeling the pinch of a drop in bank lending since the collapse of Silicon Valley and Signature Banks. The lack of credit not only hits businesses, but it also threatens economic growth while raising the risk of recession. Credit is essential to keep the wheels of the economy spinning; when credit gets harder to come by, businesses start to suffer. For example, Kryson Bratton, owner of Piper Whitney Construction in Houston has been trying to get financing for a Bobcat tractor and an IMER mixing machine to expand her business installing driveways and soft playground surfaces but banks have been reluctant to lend her money.

The tight-fisted lenders are also weighing on Liz Southers who runs a commercial insulation business in South Florida with her husband James Southers doing most installation work while she handles marketing and business development. There’s no shortage of work as “the construction industry is not slowing down,” says Liz Southers adding that if they could just hire more people then there would be so much more opportunity for them. However, it often takes over a month or longer for payment after completing jobs which means she needs access to lines of credit so that she can pay employees every week without any delay.

Even before two banks failed last month (Silicon Valley Bank & Signature Bank), borrowing money was already becoming costly due to Federal Reserve’s aggressive interest rate hikes making other lenders stingier than ever spooked by these failures leading up until now where we see significant drops in lending from weekly loan data gathered by Federal Reserve showing sharp pullbacks on credits given out compared against previous years’ figures indicating potential risks involved with new borrowers looking for funding optionsSponsored Product during uncertain times such as these.

As banks cut back on loans, this acts like a brake on the broader economy helping Federal Reserve bring down inflation however ripple effects remain hard-to-predict creating disorderly ways affecting Joe Brusuelas chief economist at RSM saying “You want the economy to cool. You want inflation to come back towards the 2% target. But this is a profoundly disorderly way to do it.”

In conclusion, small business owners are struggling with getting access to credit as banks become more cautious about lending money due in part because of recent bank failures and economic uncertainty. This lack of funding not only hurts businesses but also threatens overall economic growth while raising risks for recessionary periods ahead if things don’t change soon enough leading up until now where we see significant drops in lending from weekly loan data gathered by Federal Reserve showing sharp pullbacks on credits given out compared against previous years’ figures indicating potential risks involved with new borrowers looking for funding optionsSponsored Product during uncertain times such as these.

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Small Business Owners Struggle With Lack Of Credit As Banks Cut Back On Loans

Weeks after the collapse of two big banks, small business owners are feeling the pinch. Bank lending has dropped sharply since the failures of Silicon Valley and Signature Banks.

Credit is essential to keep the wheels of the economy spinning; when credit gets harder to come by, businesses start to suffer.

The Impact on Small Businesses

• Kryson Bratton owner Piper Whitney Construction wants financing for equipment expansion but can’t get loans from reluctant lenders
• Liz Southers runs commercial insulation company in Florida that needs lines-of-credit so she can pay employees every week without delay

Tight-Fisted Lenders Weighing Down Small Business Growth Potential

Banks have been extra-cautious following recent bank collapses which make them hesitant about providing funds even though there’s no shortage of work available says Liz Southers who runs her own insulation firm together with husband James handling installation duties while she handles marketing and business development activities.

Uncertain Times Ahead

Borrowing money was already becoming costly due to Federal Reserve’s aggressive interest rate hikes making other lenders stingier than ever spooked by these failures leading up until now where we see significant drops in lending from weekly loan data gathered by Federal Reserve showing sharp pullbacks on credits given out compared against previous years’ figures indicating potential risks involved with new borrowers looking for funding options during uncertain times such as these.

The Broader Impact is Hard To Predict

In conclusion, small business owners are struggling with getting access to credit as banks become more cautious about lending money due in part because of recent bank failures and economic uncertainty. This lack of funding not only hurts businesses but also threatens overall economic growth while raising risks for recessionary periods ahead if things don’t change soon enough leading up until now where we see significant drops in lending from weekly loan data gathered by Federal Reserve showing sharp pullbacks on credits given out compared against previous years’ figures indicating potential risks involved with new borrowers looking for funding optionsSponsored Product during uncertain times such as these.