According to the Federal Reserve as reported in The LA Times, the credit crunch that has been experienced these last few months has been limited to the real estate markets."Outside of real estate, reports that the turmoil in financial markets had affected economic activity during the survey period were limited," according to the Fed's report.
So can small business go back to work and stop worrying about how to raise money for working capital and expansion?
Not yet. CNNMoney.com reported that businesses who relied on the equity in real estate as a source of capital for their businesses, are now singing the blues about the difficulty in obtaining business loans.
How will the Federal Reserve reconcile these two opposing views? Will the Federal Reserve lower its target for the Fed Funds rate paving the way for a cut in the Prime Rate? You'll have to wait until September 18th to find out!
In the meantime, if your business has assets to offer as collateral in support of a business loan, there's financing available.
Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!
Tags : LA Times , CNNMoney.com , credit crunch , Federal Reserve , working capital
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