Small business surged in Indiana last year as economic recovery gathered steam. This recovery is spreading among state’s smaller businesses. The old National bank, however, suffered a decline in small business loans. Pace is ramping up this year as companies are getting aggressive about capital expenditures, expansions and even acquisitions.
‘Many people are sitting on the sidelines wanting to jump back into the game,’ says Tim Oliver New York-based Chase’s business banking working in Indiana that handles loans for companies having $20 million or less in annual revenue.
The 2007 and 2008 trend shows that local banks lending to smaller companies peaked. It then took a nosedive after the 2008 meltdown on Wall Street. After mid 2009, the recession has ended and the Nation’s economy started to see steady growth. Unemployment levels too plummeted slipping 9 percent in March. In Indiana unemployment stood at 9.4 percent.
Fifth Third report saw an increase of 56 percent to Indiana based companies having $20 million or less in annual revenue. Cincinnati-based bank did shy away to disclose its total dollar amount of small-business loans. It is expecting to see 50 percent increases this year.
Companies are hoarding cash. As positive sign is seen in the economy, companies have started to invest to hire new people and for reasons of upgrading equipment. Things started to pick up again but the Old National has seen 3.3 percent decline in small business lending that aims at companies having $5 million or less in revenue.
Last year bank loans to companies totaled $163.2 million that is less than $172 million in 2008. This year things have started to improve and businesses are expected to borrow again for new equipment and real estate purchases.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to