A nat Bird's commentary on July 8, asserting that banks are looking for sound small-business loans and that government-sponsored securitization will not benefit banks, was on the mark. The situation begs for a next step, however.

As Ms. Bird observed, "Small businesses do not have ready access to the capital markets." And it is the lack of access to equity markets that makes many small businesses unable to obtain credit. They simply are inadequately capitalized to justify bank credit.

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