Small Business Lending in Deep Freeze


June 25, 2013

By Bob Coleman
Editor, Coleman Report

Yesterday, we reported how Obama’s Small Business Lending Fund has increased small business lending for 90% of lenders who accessed the fund.

Today, another view. The Washington Post’s J.D. Harrison says three years after the end of the recession, we remain in a credit desert, with small business lending down all across the board.

J.D. writes…..

Small, mid-sized and large banks have each reported a steady decline in small business lending since the recession, and each has followed a downward trajectory in all three loan-size categories.

“Obviously, it dipped for everybody,” said Jim Seitz, a spokesman for the small business banking unit at Wells Fargo, one of the largest lenders to small firms in the country.

The lone exception has been loans of under $100,000 by large banks, which remain above the levels reported a decade ago and have shown some intermittent upticks in recent years. Still, even those remain below from their peak just before the recession.

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