The small firms provide employment for roughly around one and half of all the Americans. Around 60 percent of job creation is accounted by small businesses. Small businesses have and have been contributing a lot to US economy. Even though, they are denied credits from bank. Many major banks are easily providing loans for the big firms, but there is no improvement in lending for the smaller firms on which these smaller businesses rely on, as per a report by the quarterly Fed Survey.

According to a survey by the National Federation of Independent Business, there was a great elevation in the proportion of firms reporting tighter credit conditions during the past 3 months has remained same. The loans were declined to small business for less than $670 billion in the first quarter of 2010. In the second quarter of 2008 around $710 billion was denied. The major problem might be the lack of data. It is unsure whether the problem is lack of demand for credit or tight credit or both of them.