Fed's Tarullo sees need for more small business aid

WASHINGTON Oct 14 (Reuters) - U.S. officials may wish to create new temporary facilities to help small businesses get loans while the bank industry remains stressed and credit markets are tight, U.S. Federal Reserve Board Governor Daniel Tarullo said on Wednesday.

"More direct efforts may be needed to make credit available to help credit-worthy smaller business," Tarullo told a Senate banking subcommittee.

"Congress and the administration may wish to consider temporary, targeted programs while conditions in the banking industry normalize."

The Federal Reserve has already attempted to help the sector through its Term Asset-Backed Securities Loan Facility (TALF), which was begun in November 2008 to facilitate the extension of credit to households and small businesses.

"The TALF has had some success," Tarullo said.

(Reporting by Karey Wutkowski; Editing by Richard Chang)