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TARP Verdict: Bailouts Failed to Help Small Business

TARP Verdict: Bailouts Failed to Help Small Business
Photograph by Scott Eells/Bloomberg

A new report commissioned by the Small Business Administration confirms what a lot of business owners felt in the four years since the financial crisis: The government bailouts for banks did little to relieve the credit crunch for Main Street companies.

In fact, banks that took taxpayer money during the financial crisis of 2008-09 cut their lending to small businesses more than other banks did, according to the paper by Rebel Cole, a DePaul University economist.