SBA responds to questions about increased lending by biggest banks

September 26, 2012 at 11:02 am

A few weeks ago we posted about the difficulty in tracking progress of the  commitment made by 13 banks last September to increase lending by $20 billion. With no specific goals outlined for each bank, and with a fairly high revenue threshold defining ‘small business,’ it seemed that many large businesses were in line to get some of this increased lending. Meanwhile, the Small Business Administration (SBA) reported that small loans– those under $1 million or $100,000– have been on the decline.

It appears that the SBA was listening, and has now responded in the Huffington Post. Karen Mills of the SBA writes:

I’m pleased to announce that the 13 banks have already increased lending by more than $11 billion, putting them more than halfway to the goal in the first year of a three-year commitment. The continued success of this commitment serves as an important example of what is possible when the public and private sectors work together to assist America’s small business owners and entrepreneurs.

While she correctly highlights the important role of small businesses in the economy, citing that small businesses have created 2 out of every three jobs in the last few decades, she does not address any of the concerns raised in the original article. $11 billion has been deployed, which is great– but to who? How big are these small businesses that have benefited from this new capital? Which of the 13 banks have increased their lending? The post lists a few examples– first time business owners, family businesses– but if there are no clear definitions of ‘small business’ then the question of measuring progress remains.

 

Advertisements

Entry filed under: Banks, Economic Development, Economy, Small Business. Tags: , , , .

USDA awards $9 million to increase connections between producers and farmers markets What the farm bill expiration means


Categories

TSC Twitter

Error: Please make sure the Twitter account is public.

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 36 other followers


%d bloggers like this: