|
|
Article: Small businesses look for lending alternatives
- Article from:
- Long Island Business News
- Article date:
- October 13, 2009
- Author:
CopyrightCopyright 2009 Long Island Business News. Provided by ProQuest LLC. (Hide copyright information)
|
Two years after the subprime crisis began to unravel the
financial industry, traditional means of credit remain tight for
small businesses.
Bank lending to small companies dropped by $14.8 billion, or 1.9
percent, in the second quarter year over year, according to the
Federal Reserve. Small Business Administration lending during the
agency's fiscal year 2009, which ended Sept. 30, was down 36 percent
compared to 2008.
Big banks, still rattled by bad loans and the secondary market's
collapse, have retreated the most. Of the 10 largest SBA lenders in
2008, only one, Wells Fargo, increased lending in 2009. The others
cut lending to small companies by 30 percent or more, according to
the SBA.
...