In days of tight credit, it wants to lend money.
He said tight credit for builders had become a bigger problem than mortgage rates.
Just 6 percent of small-business owners see tight credit as the top problem facing their businesses.
President Carter had proposed tax cuts, smaller government, and tight credit to keep down inflation.
The Fed's concerns, however, went beyond just the problem of tighter credit in some parts of the country.
They said the report eased the fears of tighter credit.
Government officials fear the deficit will grow even higher if tight credit pushes rates up.
Finova is not the only company squeezed by tight credit.
Their remarks were interpreted as a signal that the Government does not want to see regional pockets of tight credit throughout the economy.
Other analysts, however, suggest the impact of tighter credit on inflation could be quicker.