The problem with more small-business lending as a creator of jobs

 

I recently spoke to the owner of a small company who is buying a new building. He is in an industry—energy-related—that happens to be doing quite well right now. Banks, he said, are tripping over themselves to loan him money. Three different lenders are competing for his business, which means that he's been able to [...]

Related

  • I recently spoke to the owner of a small company who is buying a new building. He is in an industry—energy-related—that happens to be doing quite well right now. Banks, he said, are tripping over themselves to loan him money. Three different lenders are competing for his business, which means that he's been able to [...]

  • The growth of small and microbusiness lending remained positive during the first half of 2008, although the expansion was slower than in the previous year, according to the latest edition of the Office of Advocacy’s annual study of lending to small firms. This new report, Small Business and Micro Business Lending in the United States for Data Years 2007-2008, gives a detailed account of small business lending overall, plus state-by-state totals and totals for individual lenders.

  • Michael Shedlock submits: Here is a pair of interesting articles on CNN Money about Small Business lending.January 4, 2010: Small business lending begins to rebound The Small Business Administration's flagship lending program backed 37% more loans in its latest quarter than it did a year ago, at the height of the financial crisis.

  • The growth of small and microbusiness lending remained positive during the first half of 2008, although the expansion was slower than in the previous year, according to the latest edition of the Office of Advocacy’s annual study of lending to small firms. This new report, Small Business and Micro Business Lending in the United States for Data Years 2007-2008, gives a detailed account of small business lending overall, plus state-by-state totals and totals for individual lenders.

  • William Kabourek submits:Jobs, Jobs, Jobs is the new mantra. One conventional way to create jobs is to foster a healthier small business climate as it is accepted that job growth begins with mom and pop companies.

  • Community banks may soon be able tap a $30 billion government fund to help them increase lending to small businesses. Democrats in Congress said the banks should be able to use the money to leverage up to $300 billion in loans to small businesses, helping to loosen tight credit markets.

  • On Monday Federal Reserve Chairman Ben Bernanke took up the growing issue of lack of lending to small businesses by banks, and the havoc it's causing in the economy. Lending to small businesses contracted by $40 billion for the first quarter of 2010 as compared to 2008. Only a third to half of small businesses were able to secure a loan or line of credit in 2009. And Small Business Administration lending all but disappeared in June, thanks to the end of a popular stimulus program.

  • Main Street vs. Wall Street by Kevin Kelly

  • Banks know what the public wants to hear: They're lending money to the little guys. JPMorgan Chase & Co.'s new ad campaign publicizes the bank's plans to lend $10 billion to small businesses this year.

  • President Barack Obama warned recently that small business lending had declined so sharply that the Small Business Administration was on track to back only half as many loans this year as it did last year. The SBA's lending data for the just-ended quarter bears out that bleak forecast: The number of loans the agency backed though its flagship program declined 57%.

 
S&P 500: 1104.18 0.48% |FTSE: 5494.16 1.17% |Nikk.: 9279.81 1.95% |DAX: 6221.52 0.92% |HSI: 21125.01 -0.2% |
FX: EUR/GBP: 1.2168 | USD/EUR: 1.2657 | JPY/USD: 84.195 | Commodities: Gold: 1245.85 | Crude - CLH09.NYM: 0.00 |