How the credit crisis affects you

Small firms, often considered the engine of the U.S. economy, are at particular risk from the credit crunch. In a National Small Business Association (NSBA) survey released last week, 67% of business owners reported being affected by the credit crunch in August, up from 55% in February. If they can't find other sources of credit, the result may be a cutback in expansion plans, staff layoffs, or even a complete shutdown of the business.

While you may not own or work for a small business, the credit squeeze may mean your local shop asks for bigger deposits when making a purchase or your contractor insists on full payment up front before starting work. When small businesses can't get loans, tax rolls may decline, and job growth and expansion in the larger economy are likely to stall.

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