Small Business Finance News
Office Of Advocacy: Small Business Lending Improving
Written by Jenna Weiner
SBA's Office of Advocacy publishes study that finds lending dropped by only 6.2 percent between 2009 and 2010 for small businesses.
Lending rates continue to be top financial news for small businesses, and a recent report offers mixed hope for entrepreneurs.
According to the U.S. Small Business Administration's Office of Advocacy's report "Small Business Lending in the United States," lending for this sector dropped by 6.2 percent during the 2009-2010 period.
However, this number does offer some positive indications for owners, as it is much smaller than the 8.9 percent drop experienced in large firm lending during this same period. Additionally, lending in the smallest business loans - those under $100,000 - stabilized during this period, down only 1 percent during 2009-2010, compared to a 5.5 percent drop in 2008-2009.
"Businesses and lenders continued to exercise caution in borrowing and lending through 2009-2010," said Chief Counsel for Advocacy Winslow Sargeant. "As the economy improves, this study, through its state-by-state display of lender performance, can help both small business borrowers and lending institutions see where small firms are beginning to find the capital they need."
Some of this progress may be attributed to an effort on the part of major financial institutions, such as JPMorgan Chase and Bank of America, that made it a priority to loosen lending standards and meet their funding goals.
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