Bernanke: Small-business credit critical

"Small businesses are central to creating jobs in our economy; they employ roughly one-half of all Americans and account for about 60 percent of gross job creation," he said speaking at a Washington forum on small-business credit.

"One measure of banks' loans to small business dropped from more than $710 billion in the second quarter of 2008 to less than $670 billion in the first quarter of 2010," Bernanke said.

"We need to find ways to ensure that creditworthy borrowers have access to needed loans," he said.

Bernanke said the Fed was aware of complaints that bank examiners, "have prevented banks from making good loans."

"We take this issue very seriously," he said, urging banks to be consistent with "prudent (lending) standards." Within that framework, increased borrowing for small businesses was good for the businesses, good for banks and good for the economy, he said.

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