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Loan availability brightens - for big firms


Larger Canadian firms are growing increasingly optimistic about the possibility of an economic rebound while the smaller companies remain skeptical about getting bank financing and are looking towards turning to government-backed financing. The Bank of Canada just finalized a survey that was released and pointed to the fact that most businesses are enjoying overall the loosest credit conditions they have seen since the summer of 2007. That was widely considered to be the beginning of the recession which many experts are calling the worst since the Great Depression of the 1930s. However the same survey says that while the larger companies are quite satisfied with the lending conditions as they exist right now there are still some concerns about borrowing possibilities for smaller firms Many small businesses are predicting that there is a trickle-down theory in effect however, and that credit conditions have always been more stringent for the smaller firm.

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