In US, big banks have not returned to their pre-recession small business lending level. While central Massachusetts banks have increased lending by several hundred million dollars since 2008.
In Massachusetts banks have millions of dollars and they have seized this opportunity to lend out to small business owners. Mostly small banks and private lenders are offering loans in Massachusetts as compared to big banks. They have also taken the advantage of State’s economy and Massachusetts’ unemployment rate to make loans to business.
According to Federal Deposit Insurance Corp.’s data, lending to small business loans have fallen 14 percent for all banks and has hit lowest level in third quarter last year. The picture is that there has been a decline in small business lending throughout recession that officially started in 2007 and ended in 2009. Banks having assets of $300 million to $500 million, have seen 23-percent decline in small business loans across the country.
It is evident from reports that lending is down nationwide but the opposite is the case with 27 banks based in Central Massachusetts. So, it can be concluded that lending has increased locally though it declined nationally. Demand for commercial and industrial loans also climbed its highest level since 2005, in-spite of the fact that bank’s lending standards have changed to some extent.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com