Interest-rate cuts have not increased lending to help small businesses resolve cash-flow shortages. Because banks are refusing to make loans and the government is focusing on big-business bailouts, small businesses are "lost in this equation," says Raymond J. Keating, chief economist with the Small Business and Entrepreneurship Council. Small firms, which create 60% to 80% of new jobs and generate 50% of the private sector's GDP, are hurting.

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