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Small Business

Banks Ease Small Business Loans But Demand Slowing

Banks are finally loosening loan terms to small businesses, but companies of all sizes have recently slowed demand for credit amid a still-sluggish economy.

The Federal Reserve’s latest survey of loan officers showed a net 23% of banks eased lending standards early this year, the most since 2005 and up sharply from a net 7.7% at the end of 2012.

The improvement was also steeper than the one seen for middle-market and large firms, defined as those with annual sales of $50 million or more.

But demand for bank loans has softened. The Fed survey found that a net 7.7% of loan officers saw higher credit demand from small businesses. Just 5.8% saw more demand from bigger firms.

Read More At Investor’s Business Daily

Small Business

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