SBA Quarterly Lending Bulletin Shows Improved Small Business Lending But Small Banks Still Hurting, Says Sunovis Financial

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A recent report from the SBA shows that lending to small businesses has increased for the first time in ten quarters. Sunovis Financial assists small businesses with SBA loans and community banks with SBA services.

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The report data indicates three things; 1) small businesses are now more willing to borrow; 2) some banks are starting to loosen their lending standards; lending increased at large banks, not small ones.

A recent report from the SBA shows that lending to small businesses has increased for the first time in ten quarters. "This may be an encouraging sign," says Sunovis Financial President, Terry Robinson. "However, small banks are still suffering, as the report revealed."

The SBA Quarterly Lending Bulletin, released in late March, shows that lending to small businesses has increased for the first time in over two years (mainly from larger banks). The report data indicates three key points:

1) small businesses are now more willing to borrow,

2) some banks are starting to loosen their lending standards, and

3) lending increased at larger banks but not at smaller banks (that traditionally offer the most small business lending.)

Overall, the report shows that in the fourth quarter of 2012 lending to small business increased by 0.4 percent. The SBA report shows that loans of all sizes under $1 million increased in the fourth quarter of 2012. The data also shows that big banks (those with assets in excess of $10 billion) are the ones funding the new loans as big bank lending increased, while small bank lending decreased.

Sunovis can help community banks with this problem through our SBA services. SBA loans, due to the guarantees, can help small banks increase profitability and stability while also helping small businesses in the community. We know that small banks are being pressured with regulations that were aimed at the big banks, and this has created difficulties," said Mr. Robinson.

According to the SBA data, Wells Fargo was the top lender in 2012 with 664,542 loans totaling $32.8 billion. Just behind were Bank of America ($26.2 billion) and JPMorgan Chase ($19.8 billion). Total loans from the next 7 biggest lenders were roughly equivalent to the loans from these top 3.

About Sunovis Financial
Every small business is important to local communities and even more important in rebuilding the American economy. Today more than ever, small businesses need capital and assistance to thrive, and that is what Sunovis is focused on.

Sunovis is an SBA expert, and also offers non-bank Short-Term Micro Loans for small businesses, not weighted on FICO scores or collateral but on business health and cash flow.

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Kathy Heshelow
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