Citigroup and other banks hiked lending to small businesses. It fulfills the promise that banks made to the White House in 2011. The pledge to increase credit seemed happening with Citigroup increasing small business loans by 21% in 2012 that amounted to $9.6 billion.
Bank of America (BAC) also commented that lending to small businesses increased 28% in the year 2012 that amounted to $8.7 million. JP Morgan Chase too touts extension of $7.5 billion in new loans during the year 2012 and 58% increase of grants every year. Wells Fargo’s new loan commitment rose 30% for small firms that totaled to $16 billion.
Lending by Citigroup remained dispersed. In 2013 itself, lending remained $9 billion while during the remaining period, Citigroup stayed committed to lend $24 billion. There is no doubt about the fact that small businesses are the founding stone for a strong economy and so lenders in US are committed towards their growth.
Citigroup alone sufficed $17.5 billion loans to small businesses after making the pledge. Other banks that participated to forward loans as a result of the pledge are Citizens Financial, Huntington Bancshares (HBAN), KeyCorp (KEY), M&T Bank (MTB), PNC Financial Services Group (PNC), Regions Financial (RF) and SunTrust Banks (STI). It is seen that banks having $10 billion in assets could approve 15.3 % loans that amounted to $25,000 and $3 million.
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