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This interesting story from the BBC about how small business loans remain a challenge examines how the recession has been hard even for small businesses that are fairing well especially when it comes to credit. According to the story, banks have increasingly shut out small businesses even in cases where credit had earlier been extended and businesses appear to be healthy. This, of course, raises the inevitable question of what the purpose of public funding to large banking institutions has been if those institutions have little or no inclination to get back into the financing game.