NYSE Chief: Small Businesses Suffering from Lack of Capital (Misc News: August 29, 2012)
The head of the New York Stock Exchange said this week that U.S. small businesses are having difficulty accessing capital, which is holding back job growth and stunting economic growth.
NYSE CEO Duncan Niederauer, told the Reuters news service that its annual study released on Monday shows that 47 percent of small business owners said their capital needs were being met marginally or not at all. This was the first year small businesses were included in the survey.
Click here to read the story posted at The Huffington Post.
"Our early sense is that the lack of access to capital is having the biggest impact on job creation," he told the news service.
The survey shows that two-thirds of the small businesses, which Niederauer called the U.S. job creation engine, do not expect add jobs in 2013, or will be cutting jobs.
Banks are less willing to bet on small businesses than in the past, especially on newer ones that have not yet built a strong credit history, he added.
The story does not mention credit unions or the bills in Congress which would raise the limit on credit union lending from 12.25% of assets to 27.5%. CUNA has estimated that the bill would pump $13 billion into the national economy and lead to the creation of 140,000 jobs – in the first year alone.
“Credit unions have money to lend to small businesses, but many are held back by the arbitrary cap on member business lending,” MCUL & Affiliates David Adams said. “We urge credit union supporters to contact their representatives in Congress to ask them to support raising the cap.”
You can comment on the story to add your voice in support of raising the MBL cap. Also, consider promoting the story on Facebook and Twitter with a plug suggesting how the nation could rectify capital problems for small businesses. On Twitter, use the hashtag #raiseMBLcap for your post. MCUL has posted the story on the league’s Facebook page. Click here to view and share the story from Facebook.