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Big companies are rushing to issue stocks and bonds, but credit is still scarce for many mostly smaller companies that rely on bank lending." /><meta name="subsection" content="Small Business" /><meta name="section" content="Article" /><script type="text/javascript" language="javascript" charset="ISO-8859-1
Are credit markets still "frozen"? Apparently so for small businesses, which account for 80% of America's economic activity:
Big companies are rushing to issue stocks and bonds to suddenly hungry investors. But credit is still scarce for thousands of mostly smaller companies that rely on bank lending.
U.S. corporations such as Ford Motor Co. and MGM Mirage Inc. raised more than $34 billion by selling stock in the first two weeks of May. At around the same time, Bill Mulrooney, chief financial officer of UniFoil Corp., was setting aside plans to borrow money for new equipment that the company had hoped would boost sales.
"I hear about the credit markets' freeing, but it's clearly not the case for small businesses," Mr. Mulrooney says.
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