Bernanke: Credit to small biz should be job one

In light of an economic rebound that has appeared to have stalled, Federal Reserve Chairman Ben Bernanke on Monday urged lawmakers to move legislation providing greater credit opportunities for small businesses. 

“Making credit accessible to sound small businesses is crucial to our economic recovery and so should be front and center among our current policy challenges,” he told Federal Reserve members at a forum on small businesses.

The chairman’s call comes as Senate Majority Leader Harry Reid (D-Nev.) will try to advance a small-business package containing billions in loan opportunities and tax breaks for small businesses. 

The bill creates a $30 billion lending pool and provides approximately $12 billion in tax relief.

However, action on the legislation might have to wait until Reid secures passage for the Wall Street reform bill and an extension to unemployment insurance. He hopes to pass both before adjourning for the August recess. Debate over Supreme Court nominee Elena Kagan could also slow progress on the small-business bill.