A recent report confirms what we already knew: Bailout Missed Main Street

From The Wall Street Journal:

Government funding to U.S. banks has done little to ease the credit crunch for small businesses—and the situation doesn't seem to be improving, according to a new report . . . released Thursday by the Congressional Oversight Panel, a group set up to oversee funds allocated by the federal government's Troubled Asset Relief Program.

"Big banks pulled back on everyone, but they pulled back harder on small businesses," said Elizabeth Warren, chairwoman of the oversight panel, in a discussion with reporters.

The U.S. Treasury Department's TARP programs, launched during the depths of the financial meltdown, didn't improve access to credit, the report claims.

"Treasury never required banks to lend their new money," said Ms. Warren.

"Banks are lending less and less. What we hoped was 2009 was a trough, but lending is not springing back," Ms. Warren said.

As small businesses continue to be blocked off from credit access, other segments appear to be having better luck. "Large businesses are borrowing more than small businesses," said Ms. Warren. "We run the risk of tilting the playing field in favor of large businesses and away from small businesses. Without theses small businesses, there will be no meaningful economic recovery."