Secret Site Map
Thursday, July 02, 2015

Home News Banks Ease Small Business Lending Standards

Banks Ease Small Business Lending Standards

Business

Banks have eased lending standards for small businesses for the first time in nearly four years, the Federal Reserve said Monday.

| August 17, 2010

Banks have eased lending standards for small businesses for the first time in nearly four years, the Federal Reserve said Monday. Separately, financial firms said consumers continue to better manage their credit card payments, with fewer customers defaulting or making late payments.

In its new survey of bank lending practices, the Fed found that the loosening of loan standards was occurring primarily at the country's largest domestic banks.

Banks had been reporting relaxed credit standards for big corporations. But the new survey marked the first indication that credit was beginning to ease for smaller companies.

That could be welcome news for small businesses. Many have complained since the recession hit that they were having more trouble borrowing money to keep operating.

The Fed said it was the first time it had found relaxed lending standards being imposed on small businesses since late 2006. The Fed defined small firms as those with annual sales of less than $50 million.

The Fed's latest quarterly report on lending was based on responses received to a survey done in late July. It found that the most improvement came in loan areas where banks were facing competition to offer credit. The survey found that the easing of standards was concentrated at large domestic banks. Most banks were still reporting lackluster demand for credit.

Click here to read the entire article.

Source: NPR



 

Top news

Plague Confirmed in Colorado Teen’s Death

The Larimer County (Colo.) Health Department confirmed that a teen died from the plague earlier this month.

Massey Services Acquires EcoShield Pest Control

Orlando, Fla.-based Massey Services has acquired EcoShield Pest Control of Atlanta and EcoShield of Austin, Texas.

Video: Terminix's 'Mosquitonado' Ad

In advance of the July 22 release of “Sharknado 3: Oh Hell No!” Terminix has released a trailer for an equally over-the-top parody, “Mosquitonado,” based on the world’s actual deadliest animal: mosquitoes.

Bed Bugs Discovered in UN Building

Staff at the United Nations' New York headquarters got a message informing them of the presence of bed bugs.

World's Largest Eradication to Save Birds Complete

The South Georgia Heritage Trust has concluded the baiting phase of its multi-year project to remove invasive rodents which have destroyed most of the native birds on one of the world’s most important seabird sanctuaries.

x