Fed Survey Offers Glimmer of Credit Hope
Aug 24, 2010

While the status of U.S. Small Business Administration (SBA) lending remains—in the continued absence of the small-business provisions of the stimulus package—bleak, a tiny glimmer of hope for the small-business owners suffering through the credit crunch has arrived.

According to the most recent Federal Reserve Senior Loan Officer Opinion Survey, large banks eased their lending standards for small-businesses for the first time since late 2006.

While banks eased their lending standards and terms modestly in many categories of borrowing from April to July, the improvement for small business was modest. According to the survey, about 14.5 percent of banks said they eased standards for small-business loans—compared to the only 5.5 percent that tightened them. The lending standards at the remaining 80 percent were unchanged.

While this petite increase is a welcome development, access to sufficient credit remains a pronounced concern for America’s small-business owners.

NSBA continues to urge Congress to extend the stimulus provisions providing a 90 percent guarantee on SBA 7(a) loans and the eliminating the borrower fees on both 7(a) and 504 loans through all of 2010 by approving the Small Business Jobs Act of 2010, in its entirety. For more information on this legislation, please click here.