|To Boost Small Business Credit, Think Small (Banks)|
Bank credit, as you probably know, is crucial to small businesses seeking to grow.
To Boost Small Business Credit, Think Small (Banks)
By Scott Shane on July 09, 2012
In the years preceding the financial crisis, big banks controlled a growing share of the small business loan market, rising from just over 31 percent in 2005 to nearly 39 percent in 2009, according to Small Business Administration data. Over the last two years, that trend reversed, dropping to just under 38 percent in 2011.
While it’s too early to tell whether this is just a blip or a shift back to the way things used to be, the decline in market share is actually good news for small business owners. That’s because their access to bank credit improves when the market isn’t dominated by behemoths, as this Journal of Banking and Finance article points out.