Rachel Duff, Farm Journal Intern
|Three Facts about the credit crisis: • The credit is tight because of the global recession and the financial crisis.
• The government, private and public partnerships have started programs to help.
• Business owners need to have the tools to watch the credit crisis.
Because of the global recession and credit crisis, lenders have a risky environment and business owners have less demand for their products. That means credit is tight, especially for rural America, says Brian Briggeman, economist for the Federal Reserve Bank of Kansas City, Omaha branch.
The bottom line of the credit situation is that the banks aren't lending to each other because of the recession and financial crisis. Therefore, they really aren't lending to business owners. The risk is considered too high, Briggeman says.
There are programs out there that can help the situation, he says.
Places to look for help:
• Farm Service Agency (FSA)
• Small Business Administration (SBA)
• American Recovery and Reinvestment Act (ARRA) , recently created by Congress