SBA impact on lending

Lending for small businesses has undergone some major changes in the past few years. Before the economic downturn of 2008, fiscally responsible small business owners had no problem finding startup or expansion capital but since then, things have changed.

Recent studies (PDF) by national and regional organizations show a 20 percent decrease in small business loans since the financial crisis, while loans to larger business are up by about 4 percent.  Here’s an overview of the SBA impact on lending. 

SBA Impact on Lending

Luckily for the 28 million small business owners in the U.S., there are alternatives to traditional bank loans. The SBA offers three distinct loan programs for small business owners and currently works with about 500 banks in the U.S. that lend to small businesses.  The SBA doesn’t actually grant the loans, but guarantees them, which makes it safer for local banks to extend the credit. Last year, SBA loans amounted to an impressive $23.6 billion.

In addition to the


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Source: Small Business Trends