While most of the nation’s attention is focused on saving behemoth financial firms, small businesses are struggling to ride out a perfect storm of tougher credit conditions in a badly hobbled economy.
The result is that the finance sector’s woes””which has spawned new lending prudence””is exacerbating, rather than relieving, economic weakness.
Even government programs designed to help small business are falling down on their mandate just when they are needed most, says small business advocates.
“It’s always been difficult for small business but now it is become almost impossible” to survive, say Marilyn Landis, chairwoman of the National Small Business Association (NSBA). “Many factors are coming together to make this a perfect storm for small businesses.”