HeraldNet: Lockhart: Recovery isn't likely to come from small businesses



RECENT POSTS:
• 'Dorm room' entrepreneur wins global competition November 20 • Edmonds-based Forward Mobility wins $50,000 grant November 20 • Frontier Bank opens SBA loan center November 19 • Coffee stand owner: 'Silly girls ... bikinis are for the beach.' November 18 • Some small firms cutting health insurance November 18

Archives:



LINKS:
About us • About The Storefront Franchises • Franchise registration • International Franchise Association Recommended Reading • Duct Tape Marketing • Small Business Trends • Washington Small Business Development Centers Resources • Development Centers • Economic Development Council • IRS barter tax tips • Labor and Industries • Seattle Score • Small Business Administration • Women’s Business Centers • Workforce Explorer Startups • IRS tips for starting a business • Small business planner • Tips for Washington state

Twitter Updates


RELATED ARTICLES:
• Biologists try to save fish after landslide November 23 • Some stores, malls to get a jump on ‘Black Friday' November 23 • More holiday travelers expected than in 2008 November 23 • Goodwill store coming to Monroe November 23 • Classic sneakers will be in demand November 23 • When the customer is wrong and a jerk November 23 • Job seekers in Oregon may just be giving up November 23 • Farmers market takes its sales online November 23 • Edmonds firm begins production on mobility device November 23 • Biz Bits November 23


ADVERTISEMENT <script language=JavaScript src="http://ads.heraldnet.com/servlet/ajrotator/169233/0/vj?z=heraldnet&ct=122081&dim=169231&abr=$scriptiniframe"></script><noscript><a href="http://ads.heraldnet.com/servlet/ajrotator/169233/0/cc?z=heraldnet"><img src="http://ads.heraldnet.com/servlet/ajrotator/169233/0/vc?z=heraldnet&ct=122081&dim=169231&abr=$imginiframe" width="160" height="600" border="0"></a></noscript>

The Storefront

November 10, 2009

Lockhart: Recovery isn't likely to come from small businesses

Posted at 1:45 pm

The nation's recovery from recession will be slow and marked with high unemployment rates, Federal Reserve officials said Tuesday.

The presidents of the regional federal banks in San Francisco and Atlanta warned that jobs won't likely rebound for several years, and said small businesses probably won't play the stimulus role they have in the past.

Dennis Lockhart, president of the Federal Reserve Bank in Atlanta, said a “very slow net job gains” may occur “sometime next year," according to the Associated Press.

The AP reports: Small businesses — which held up reasonably well in the 2001 recession — have been clobbered by the downturn, accounting for about 45 percent of net job losses through the end of 2008. During the last two economic recoveries, small businesses contributed about one-third of net job growth. Lockhart said he doubted that would be the case this time.

Many small businesses rely on community banks for credit, such as Everett's Frontier and Cascade banks. But those types of banks are drowning in commercial real estate loans -- an area largely in default -- meaning credit is hard to come by.

Lockhart said he is “particularly concerned” about that linkage, according to the AP.