SBA Report Shows Small Business Lending Declines from 2010-2011

July 26, 2012 at 2:40 pm 2 comments

The Small Business Administration Office of Advocacy released a report looking at small business lending between 2010 and 2011. Not surprisingly, the analysis shows that small business lending by large banks and depository institutions declined during that time period. In particular, lending by the largest institutions has seen a steep decline, as shown in the chart below. The most dramatic increase and decline between 2005 and 2011 occurred with lenders with $50 billion or more in assets. These “megabanks” accounted for 51 percent of the decline in small  business loans.

Small business loans overall decreased by 6.9 percent between 2010 and 2011. The number of large lenders (assets over $10 billion) also decreased; however, their share of assets held by large lenders increased at the same time.

These findings further corroborate what has already been known about small business lending in recent years. As large banks pull back from small business lending, fewer borrowers are able to access capital. It appears also that as the number of lenders declines, resources are not diminishing but instead being consolidated into the hands of fewer large banks.

Until this picture changes, there will continue to be a lack of access to capital for many small businesses. The capital is there, but it is not getting to the people who need it.

Entry filed under: Banks, Small Business. Tags: , , .

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  • 1. basyleyed  |  July 26, 2012 at 7:17 pm

    I wonder how this compares to community lenders who do not have to file call reports or Community Reinvestment Act disclosures.

  • […] $100,000 to $250,000, and $250,000 to $1 million (see a previous blog post about this report here). The SBA’s own analysis has shown that loans under $1 million decreased significantly, […]


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