Insights into the world of small business lending and development
Three Reasons Why Bank Lending to Small Businesses Has Reached Post-Recession Highs
While it may not feel like it, the Great Recession started almost a decade ago. According to the U.S. National Bureau of Economic Research the recession began in December 2007, peaked in December 2008, and ended in June 2009. What followed for more than two years afterward was a “credit crunch” during which banks, both large and small, tightened the spigot on small business lending. In fact, for much of 2011, big banks approved less than ten percent of the loan applications submitted by small business owners in search of credit, according to the Biz2Credit Small Business Lending Index™, the monthly analysis of more than 1,000 small business loan applications on Biz2Credit.com.