Businesses Start To Feel Economic Pinch

By Emory Bryan, The News On 6

TULSA, OK - How is the credit crisis on Wall Street is playing out for small business in Oklahoma?  It's beginning to have an impact on what people are buying and that's having an impact on business.

The impact on business in Tulsa may not yet be apparent.  That's at least the conclusion of many business leaders.  While regular people are wondering how this economic crisis is affecting them, business owners and managers are also wondering what's going to happen.

They can't predict the future, but as of now, the impact is being seen in home foreclosures, which are on the rise, and by businesses trying to get credit, especially new businesses without a history of success.

Several businesses The News On 6 talked with said credit is harder to get because the banks have tougher standards.  They're requiring more collateral, and a greater ability to pay before they'll issue the operating loans that some companies depend on.

Despite that, several industrial training schools say business is good, indicating that manufacturers still intend to be hiring new employees to do work.  And, that's a positive sign. 

A small business incubator told The News On 6that people are making new business plans.  They've seen consistent interest, though they noted that perhaps some of it comes from people who have been laid off and are now wanting to start their own business.

The credit crunch is also having a big impact on car sales.    

When gas prices were higher, people were still buying cars.  Many of them were trading to ones that were more efficient.

Now, credit is tightening up and a prominent car dealer told The News On 6 on Friday that is preventing some people from getting financing and having a bigger impact than high gas prices.  However, he noted there are still lenders making car loans and that the only way to tell if you can get financed is to talk it over with a lender.