SBA Rates And Market Commentary From Liberty SBF For Feb. 21, 2014

February 21, 2014

banner-loan-programsAmi Kassar posed this question in his blog on the Wall Street Journal website: Has small-business lending really improved?

Kassar said many businesses have been able to climb out of the Great Recession in a better position than they started, making themselves more bankable.

“The credit-worthy group has gotten bigger and it seems the approval process has gotten easier, but the fact remains that there is still only a small percentage of businesses that are bankable,” he wrote.

For those who aren’t in that top tier the choices have expanded.

“On the flip-side, nonbankable small-business-owner options have increased exponentially and these business owners are more likely to get a loan today than they were a few years ago,” Kassar said.

In its small business blog, The New York Times reported that social media is king to Millennials. “Millennials put more stock in social media than they do in government, business or religious institutions,” wrote blogger Gene Marks.

The Times also reported that small businesses have been learning from the big guys when it comes to cutting costs.

“Thanks to the rise of online job marketplaces, small businesses are increasingly using foreign contract workers to lower their costs,” the paper reported.

Coleman Report reviewed SBA lending out of Credit Unions vs. banks over the past few years. They found that the interest from Credit Unions in originating SBA loans has been on the decline since 2009 from a standpoint of number of loans but average loan size has nearly doubled.

“The Coleman 500 for FY 2013 (published November, 2013) showed that four banks single-handedly made more loans and seven banks achieved a higher loan volume than all credit unions combined,” Coleman reported.