Kevin O'Leary's warning rings true as a worsening credit crunch crushes America's small businesses

• America's small businesses are getting squeezed by a harsh credit environment. 
• That's reflected in a record gap between short-term loan costs for smaller firms and debt rates for other corporates. 
• "Shark Tank" investor Kevin O'Leary has repeatedly warned that small businesses are facing heightened risks.

America's small businesses are getting crushed by a credit squeeze.

Borrowing costs for such companies have surged to unprecedented levels - 60% higher - relative to those for larger corporates with moderate credit risk, thanks to the Federal Reserve's interest-rate increases and a tightening of lending standards following this year's banking turmoil.