Small Business and Micro Business Lending in the United States for Data Years 2007-2008

Small businesses will play an important role in the nation’s economic future. The Office of Advocacy’s Small Business Profile for the United States, released today, provides details about small business employment, business starts and closings, bank lending in 2008, the demographics of business ownership, and firm and employment change by major industry and firm size.

Small businesses will play an important role in the nation’s economic future. The Office of Advocacy’s Small Business Profile for the United States, released today, provides details about small business employment, business starts and closings, bank lending in 2008, the demographics of business ownership, and firm and employment change by major industry and firm size.

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%.

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.

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.

Despite more recent numbers showing improvement in the U.S. economy, the economic picture for small firms at the end of 2008 offered few bright spots, according to the 2009 edition of The Small Business Economy released by the U.S. Small Business Administration’s Office of Advocacy. Small businesses in most industries, especially in the construction industry hard hit by the housing market downturn, saw declines in employment. Along with declining sales, most small businesses faced a less accommodating credit market, especially in the second half of 2008.

Lending to business fell in June as small firms again felt the brunt of tighter credit conditions, the Bank of England said.

Despite more recent numbers showing improvement in the U.S. economy, the economic picture for small firms at the end of 2008 offered few bright spots, according to the 2009 edition of The Small Business Economy released by the U.S. Small Business Administration’s Office of Advocacy. Small businesses in most industries, especially in the construction industry hard hit by the housing market downturn, saw declines in employment. Along with declining sales, most small businesses faced a less accommodating credit market, especially in the second half of 2008.