The Small Business Administration (SBA) recently released the Small Business Lending 2012 annual report. This yearly review of small business lending activities within depository lending institutions in the United States can aid small businesses in the in the identification of local small business friendly lending institutions.
There was good news for small businesses as the number of loans went up from 21.3 million to 23.5 million last year. However, total lending to small businesses decreased from $606.9 billion to $587.8 billion in 2012.
The recent trend of financial institutions shifting credit concentrations from CRE to C&I was reflected in the report. Commercial and industrial lending in amounts under $100,000 was up in the number of loans as well as amount of loans, the SBA said in a press release announcing the report.
“While overall small business lending continues to decline, it is not a sharp decline we saw in recent years. However, the study shows an increase in the number of small business loans, which does not reflect an indicator of an improved economy,” Winslow Sargeant, Chief Counsel for Advocacy said in the release.
Small Business Lending Report, 2012
Read the entire SBA.gov news release here.
To understand how the business lending landscape has changed for credit unions, download the Sageworks whitepaper titled, “Member Business Lending Landscape: Managing Risk & Opportunity”.
Article contributed by Sageworks Marketing Analyst, Sanaa Bhambri.
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