PARIS — Lúcio Machado’s small business in northern Portugal is finally starting to bustle again after his country’s recession. He hoped to expand his 12-employee business, which repairs autos and creates custom mechanical equipment for trucks and tractors, with a loan.

But a banker dashed his plans. For a loan of more than 100,000 euros (or about $138,000), his banker told him the annual interest rate would be around 10 percent. A smaller loan, even if secured with collateral, would cost around 7 percent — nearly double what a comparable company in Germany might pay.  Read more