Small business owners feel the credit crunch

Small businesses are seeing the already-tough process of getting business loans get even tougher. Borrowing for small businesses was already constrained due to rising interest rates. Following the recent Silicon Valley Bank collapse, some banks – particularly the small and midsize banks that serve small businesses -- may be forced to tighten credit further, since they’re seeing an outflow of deposits. And banks are being more cautious in general due to uncertainty about the economy. Small businesses say they're getting rejected for loans or seeing more unfavorable terms, meaning some plans for expansion are being put on hold.