New York - On the brink of a bankruptcy that could threaten hundreds of small businesses in the United States, lender CIT Group was engaged in a desperate last- minute search for cash on Friday.

CIT, which provides loans to about 1 million small and medium- sized businesses, was involved in round-the-clock talks to secure billions of dollars in financing from creditors. US President Barack Obama's administration has refused to step in to rescue the firm.

Its chances of rescue are unclear. CIT's stock price, which has collapsed this week, rose Friday on speculation that a buyer might step in. But the Wall Street Journal reported that CIT could file for bankruptcy if there is no deal by day's end.

Economists and politicians are divided over just how worrisome the bankruptcy of CIT would be for the US economy. It would be the largest bank to collapse since Washington Mutual last autumn, and some fear it could disrupt the country's tentative recovery from a deep recession.

Yet CIT is not nearly as critical to the financial system as Lehman Brothers, the collapse of which nearly brought Wall Street to its knees in September. CIT offers loans mostly to smaller retailers and manufacturers and does not have the kind of international reach that Lehman did.

CIT has already received 2.3 billion dollars in emergency government loans. The Obama administration has been divided over whether to offer more help, according to US media.(dpa)