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Small Business

Report Says Better Bank Lending will Improve Small Business Exports

WASHINGTON – Improved small business lending by banks in the United States would boost exports by the smallest businesses, says a new report issued today by the U.S. Small Business Administration (SBA) Office of Advocacy. The report, called The Impact of Credit Availability on Small Business Exports, examines the relationship between steep declines in small business lending and falling small business exports during the nation’s recent economic recession. Small exporters with fewer than 100 employees especially feel the effects of deteriorating bank health or declines in bank lending. 

“Small businesses that export their goods and services need to compensate for the riskiness of cross-border transactions and to allow for longer transportation times to get goods to market,” said Dr. Winslow Sargeant, Chief Counsel for Advocacy. “Add to that the greater reliance of small firms on bank credit in general, and it’s easy to see how even small changes in bank health could have the effect of undermining small business exports.” 

The effects of declining bank health on exporting were less evident for larger firms. The report defines bank health in terms of bank capital, liquidity, and nonperforming loan ratios. 

“As policymakers focus on ways to improve the economy, the smallest businesses need more access to capital to grow their businesses and export their products,” said Dr. Sargeant. “Small businesses are playing an important role in this nation’s economic recovery, and if we want to export more American products around the world, we must improve this country’s lending environment.” 

The Office of Advocacy, an independent office that serves as the voice for small business within the federal government, sponsored the report. In the report, the author, Dr. Joe Peek, also examines differences by industry and state. 

The full report is available on the Office of Advocacy website at



News Release

For Release: April 3, 2013 Contact: Kathryn Tobias (202) 205-6938
SBA Number: 13-06 ADV Email Address:


The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed and Senate confirmed Chief Counsel for Advocacy advances the views, concerns and interests of small business before Congress, the White House, federal agencies, federal courts and policymakers. Regional advocates and an office in Washington, D.C., support the Chief Counsel’s efforts. For more information, visit, call (202) 205-6533 or get updates on Twitter (@AdvocacySBA) or Facebook at

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