Skip to Content
Small Business

Decline in Small Business Lending Has Bottomed Out, Says SBA Report — Now What?

The nose dive that plagued small-business lending during and after the recession has finally leveled off, according to a new report from the U.S. Small Business Administration’s Office of Advocacy.

Small-business loans had been growing steadily and hit $711.5 billion in 2008 before tumbling into a five-year decline.

American banks reported $587.8 billion in outstanding business loans of $1 million or less in June 2012, showing a $19 billion drop since the previous year, according to the new SBA report. Lending in 2012 fell short of pre-recessions levels by $124 billion. It needs to increase by 17.4 percent before it makes a full recovery.

“While overall small-business lending continues to decline, we are not seeing the sharp decline we saw in recent years or the extreme decline we saw in 2008,” said Winslow Sargeant, chief counsel for the SBA’s advocacy office. “More importantly, the study shows an increase in the number of small business loans, more loans going out the door, which underscores the positive turn in our country’s economic landscape.”

The SBA study — which uses quarterly reports filed by financial institutions to compare small-business lending with total assets — scores and ranks institutions.

Read the entire article at

Small Business

Innovators and Entrepreneurs: Balloon sculptor’s designs pay off

Stay connected to what's happening in Alabama now.

  • Enter your email address to receive periodic updates on the evolution of business in Alabama.

Ready to start your company's next chapter in Alabama?

Alabama may be small in size, but its ability to accommodate businesses seeking success is vast. See why companies like Mercedes, Airbus, Hyundai, and Honda have decided to call Alabama home.

Find A Site Learn More About Alabama