SMALL BUSINESS LENDING TO INCREASE?

I don’t think it comes as a surprise to any one that banks are approving fewer small business loans than ever. But, there might be some light at the end of the tunnel. According to Biz2Credit, small local banks approved an estimated 45 percent of loans to small businesses in September. However, big banks have only approved 9 percent of small buisness loans in the same month. I believe, at some point, big banks will need to proactively look to increase their small business loans to diversify their risk and portfolios and to increase their overall bottom line. The question is, when will this time come.

According to a recent article by Kiplinger, this could happen as early as next year. The article states that overall business lending will increase in 2012; which could bode well for the small business community.