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NEW YORK — In a sign the financial crisis isn’t over, CIT Group Inc., the No. 1 lender to small and mid-sized U.S. businesses, is scrambling to get additional help from the federal government. CIT got $2.3 billion in bailout cash in December.

A collapse of CIT, whose 1 million clients include big names from the franchisee of Dunkin’ Donuts to retailer Dillard’s Inc., could deal a devastating blow to the economy by cutting off financing just as businesses need it most, analysts warned. That in turn could force thousands of small and medium-sized companies to drastically cut costs or shut down — driving up unemployment and dashing hopes for a swift economic recovery.

"They’d have to lay people off, downsize and maybe shut their doors," independent banking analyst Bert Ely said of CIT’s clients.

"It would hardly be positive for the economic recovery."

Apparel industry insiders say it would be very difficult for rivals to absorb CIT’s clients because other lenders are already under financial strain, leaving many orphaned suppliers potentially without any access to financing online cash advance.

CIT, which in April posted a bigger-than-expected first-quarter loss, has been hit hard by the ongoing credit crisis as investors have shied away from purchasing all but the safest forms of debt, leading to a near disappearance of funding options.

CIT said it has retained the law firm Skadden Arps, a bankruptcy specialist. CIT spokesman Curt Ritter declined to say if Skadden Arps was advising CIT on a bankruptcy filing.

Some analysts think the hiring of the bankruptcy law firm was designed to pressure the government to step in with help. But by rescuing CIT, the Obama administration may have to rethink whether to commit more taxpayer money to other firms that get into trouble or simply let them fail.

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