Credit freeze chills Chicago

Crain's:

The choking credit market is causing pain in just about every nook of Chicago's economy, squeezing businesses and consumers alike.

From manufacturers to car dealers to big publicly traded firms, companies that rely on borrowed money to buy inventory, expand facilities and strike deals are having trouble tapping credit markets — and paying more when they do.
...
It's a pinch many Chicago-area businesses find themselves in amid the credit seizure that began in earnest three weeks ago. As markets await relief from the $700-billion federal bailout plan approved by Congress on Friday, some local businesses already are being forced to scrap or postpone expansion.
...
Exacerbating the situation: A number of regional banks that had been active lenders in Chicago, such as Cleveland-based National City Corp., are pulling back to preserve capital, according to local bankers. A National City spokeswoman says that the bank "continues disciplined lending" and its capital levels well exceed minimum regulatory requirements.

"There's no doubt people have exited the market," says Mitchell Feiger, CEO of Chicago-based MB Financial Inc., which lends to mid-sized companies.

Worth a read if you're concerned about the lending business.