Why do big business failures take money away from small businesses?

When a larger business becomes delinquent on a loan, a small business may suffer. The bank holding the large business loan may be forced to call in loans or lines of credit to several small or minority businesses to meet loan portfolio standards.

The Capital Access Forum is working with the Commerce Department to try to find a way to resolve this problem, in which smaller businesses become victims even when they are meeting the terms of their credit and loan agreements.