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Pickleball Bar Loan Portends US Small-Business Credit Crunch

  • Lending already tough for consumers, business pre-SVB collapse
  • Past crises show bank turmoil spills over to local economy
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Act fast on that loan, a banker warned the couple planning to open a pickleball bar in Florida. In Maryland, a toy retailer is struggling with delays in renewing his credit line. An Indiana car-loan financier is nervously watching for any signs of trouble in repayments.

In the early fallout from banking sector turmoil, American small businesses are facing a tougher time accessing capital, compounding already-tight lending standards and soaring interest rates. That’s a bad omen for the US economy, and bankers are warning that things will only get worse.