RALEIGH, N.C. -- Lt. Gov. Walter Dalton says North Carolina's small businesses are getting hit hard by the rough economy because they can't get loans while essentially having to lend to large companies at the same time.

Dalton told a special House committee looking at small business issues on Thursday that mom-and-pop operations have been at the mercy of large firms with cash flow problems who delay payments on their invoices.

He asked the committee to consider putting more state money toward a "Small Business Assistance Fund" created last year to provide loans to small companies seeking bridge loans or other expenses that will preserve jobs.

The lieutenant governor has been touring the state recently meeting with small business owners to hear their concerns.

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