Small Banks Lending More Money to Small Business
Small business lending at local banks is up, but large banks are approving less loans than they have in years.
Biz2Credit reported that small banks approved 45.1% of loans for small companies in September. In August the figure was 43.8% and at the beginning of 2011 it was 43.5%.
On the other hand big banks only approved 9.2% of small business loans, down from 9.35% in August. In January big banks approved 12.8% of small business loans.
Rohit Arora, of Biz2Credit, points out that big banks are more influenced by the weak global economy and small banks think on a more local level.
With big banks’ small business lending dropping and small banks’ loan approvals on the rise it’s the right time to visit your community bank for a loan.