Credit crunch hits large and small

NEW YORK, Oct. 2 (UPI) -- The impact of the credit crunch is showing up in lending rates and the scarcity of loans available in the United States and abroad, records show.

The rate U.K. banks use to loan each other money, called the LIBOR for London InterBank Offered Rate, reached a record 5.07 percent Wednesday for 30-day loans based in euros, USA Today reported Thursday.

Loans offered to speculative-grade companies – smaller companies without deep pockets – reached $37 billion on 101 debt issues, Standard & Poor's reported. A year ago, the same category of lending was at $107 billion based on 247 issuances, the newspaper said.

The impact of low credit availability is widespread as two-thirds of non-financial businesses are considered speculative-grade companies, USA Today said.

Big companies are also feeling the heat. General Electric, one of six U.S. firms that maintains an AAA rating at Standard & Poor's, agreed to pay 10 percent on a loan agreement made with Berkshire Hathaway Wednesday.