Continued from page 2

“One of the biggest roadblocks is the availability of credit,” Mr. Sohn said. “Many small businesses have been cut off from their local banks and are having difficulty getting credit from their suppliers. Some use personal credit cards to meet payrolls,” though banks also are cutting back on credit lines.

Mr. Sohn said the administration’s approach of using bank-bailout funds to recapitalize community banks that lend to small businesses is one way to open up more credit, as is the administration’s proposal to expand lending by the Small Business Administration.

“The government can play an important and significant role in channeling credit to small businesses,” he said.

Stephen Dinan and Kara Rowland contributed to this report.