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Small business lending remains positive

The growth of small and microbusiness lending remained positive during the first half of 2008, although the expansion loans2was slower than in the previous year, according to the latest edition of the Small Business Administration’s 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,” (http://www.sba.gov/advo/research/sbl_08study.pdf) gives a detailed account of small business lending overall, plus state-by-state totals and totals for individual lenders.

The study finds that for the year that ended in June 2008, the total value of small business loans outstanding increased 4%, and the value of microbusiness loans outstanding increased 6.8%. Both rates were down from the previous one-year period, but they were still in positive territory. 

The largest increase was in the number of microbusiness loans (under $100,000), which were up by 15.7%. This may be an indication 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%.

Small businesses looking for loans will find the report useful because it provides state-by-state rankings of banks and other financial institutions on their small business lending. These rankings show who made the most small and microloans in each of the 50 states and the District of Columbia.  “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,” said Advocacy Economist Victoria Williams, coauthor of the study with Senior Economist Charles Ou.

The full study, including expanded state-by-state tables, is available online at www.sba.gov/advo/research/lending.html.

Source: U.S. Small Business Administration, www.sba.gov


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