Main Street Monday — Small Business Lending Standards Relatively Unchanged
August 8, 2016
By Bob Coleman
Editor, Main Street Monday
Main Street Monday — Small Business Lending Standards Relatively Unchanged
Says the Federal Reserve in its July 2016 senior loan officer survey.
Overall, banks tightened credit standards for large and middle-market businesses
For very small businesses, annual sales less than $5 million, credit standards remain unchanged.
| Businesses with Revenues | Tightened | Unchanged | Eased |
| Less than $5 Million | 18% | 57% | 25% |
| Less than $50 Million | 10% | 88% | 2% |
| Over $50 Million | 10% | 89% | 1% |
Most banks that reported stronger loan demand cited the following as important reasons: increases in customer inventory financing needs, customer accounts receivable financing needs, and customer investment in plant or equipment.