The BizFilings blog covering business tips and trends.
Treasury Secretary: SMBs Need Credit to Spur Jobs Creation and Innovation
Published on Mar 23, 2011
Read 'Treasury Secretary: SMBs Need Credit to Spur Jobs Creation and Innovation' at 'Time to Start Up,' the small business blog by BizFilings.
At a conference Tuesday, Treasury Secretary Timothy Geithner maintained his assertion that the U.S. small business sector needs greater access to credit in order to stimulate job growth and innovation.
The secretary's position reflects that of the Obama administration, which has been busy trying to improve its standing with the business community in recent months, touting small businesses as critical to economic recovery.
"The financial crisis caused a great deal of damage to the capacity of innovators to access capital, and we can't promote innovation and investment in the United States unless we help innovative companies get the funding they need to succeed," the Wall Street Journal quotes Geithner as saying.
Geithner pointed out that the recession caused private banks, venture capitalists and other lenders to cut back on the distribution of credit - an argument that the National Federation of Independent Business has contradicted, asserting in its most recent report that 92 percent of small businesses met their credit needs in February.
However, most economists agree that such surveys only reflect the conditions of the most well-off small firms and that the vast majority of entrepreneurs forming a corporation are facing much more difficult circumstances.