Business
Inc. | Credit Tighter for Small Firms
By:Angus Loten
Citing the economic downturn, more banks are raising lending standards for small businesses, the Federal Reserve reported this week
In a survey of senior loan officers at 56 domestic banks, about 50 percent said they tightened lending standards for small firms in April, up from 30 percent in January. The number was even higher among U.S. branches of foreign banks, the report said.
BusinessWeek | Bankruptcies on the Rise
by John Tozzi
More businesses filed for bankruptcy in April, 2008, than in any month since new bankruptcy laws took effect in 2005, according to a company that tracks federal court filings.
The numbers show a 49% increase in commercial bankruptcies over last year, with an average of 235 daily filings last month compared to 158 in April, 2007, according to data compiled by Jupiter eSources, an Oklahoma City company that runs a database called Automated Access to Court Electronic Records(AACER). More than 5,000 firms filed for bankruptcy in April, 2008, the most in any month since the new laws took effect in 2005.
Entrepreneur | Are Small Firms More Innovative?
Yes, according to research done by the National Federation of Independent Business (NFIB). “Our research shows that small firms are twice as innovative per employee as larger firms, and the companies who entered demonstrate that fact,” said NFIB president and CEO Todd Stottlemyer.
The Washington Post | Report boosts bipartisan health plan
The Associated Press
Thursday, May 1, 2008; 5:58 PM
WASHINGTON — A bipartisan plan for universal health care coverage would pay for itself and eventually could create modest budget surpluses, according to a congressional report released Thursday.
The report by the nonpartisan Congressional Budget Office and Joint Committee on Taxation said the health care plan could be fully operational by 2012 and become “budget-neutral” by 2014. That means the plan would bring in as much revenue as it costs to implement.
The New York Times | Gas Prices Hitting Small Firms
By Angus Loten, Inc.com
Record-high gas prices are taking a toll on smaller businesses, with many passing along higher costs to customers.
In a recent nationwide survey of more than 1,000 small-business owners by Discover, 75 percent said rising gas prices were cutting into profits. Gas prices make up a larger portion of expenses for smaller businesses, according to Sastry Rachakonda, the director of Discover’s business credit card.