Where are the Friendly Banks?
The SBA Office of Advocacy released its latest annual study of banks’ and other financial institutions’ small business lending.
The study “Small Business and Micro Business Lending in the United States for Data Years 2007-2008” revealed that the growth of small and microbusiness lending remained positive during the first half of 2008 (4 percent and 6.8 percent, respectively), although the expansion was slower than in 2007.
In this study, small business loans are business loans of less than $1 million, and microbusiness loans are loans of less than $100,000. In terms of number of loans, the largest increase was in microbusiness loans, which were up by 15.7 percent, indicating that more loans are being made through business credit cards. The number of mid-sized loans ($100,000 to $1 million) fell by 23.3 percent.
So which banks are the most likely to make business loans in your state? The study offers a detailed account of small business lending overall, as well as totals for each state and for individual lenders (click on your state for more detailed information).
“In the current financial climate, it’s especially critical for small firms to know which banks and financial institutions have been the most likely to make small and microbusiness loans,” expressed Economist Victoria Williams, coauthor of the study with Senior Economist Charles Ou.