The Small Business Loan Supply and Demand Debate Continues


June 13, 2013

Jeanne Hulit-Hi-Rez-200x280By Bob Coleman
Editor, Coleman Report

Yesterday morning we profiled Kent Hoover’s coverage of Tuesday’s small business economic summit where he focused on how giving lenders access to federal government data could innovate the small business lending industry.

Washington Post’s J.D. Harrison’s coverage goes another direction – the revival of the supply and demand issue. Main Street says they can’t get capital and banks say they don’t have enough qualified borrowers walking in through the door.

Summarizing the debate is SBA’s Jeanne Hulit.

Harrsion writes:

Hulit noted that outstanding small business loans have declined 17 percent since 2008. In total, that means banks have about $123 billion less in small-dollar loans (those of less than $1 million) on their books than they did before the recession. Even as the economy showed signs of progress this past year, that micro-lending gap has remained.

“The larger, more-established businesses seeking larger loans are definitely getting access to credit,” she said. “It is the smaller start-up businesses, the ones with under $1 million dollars in revenue, that are still significantly challenged.”

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