New York SBDC Research Network

Excerpt from an article by Bob Coleman To read more, visit  ColemanReport "Paypal, Amazon and Alibaba pose more of a threat to traditional lenders than the Fintech industry. As Fintech ebbs and flows, these high tech giants are starting to put up some serious small business lending numbers. Amazon just passed $3 billion. Last year Paypal also topped $3 billion in small business lending in the United States. In the US, PayPal offers two financing programs, including one that is similar to the UK program, which takes a percentage of merchants’ PayPal revenue and is underwritten primarily on PayPal sales without a credit check. The other program available in the US is closer to a conventional business loan, taking into account a variety of credit factors and repaid with weekly payments from a business bank account."

From SBA.gov The SBA is making it easier for small businesses to find lenders through Lender Match, a FREE online referral tool that connects small business borrowers with participating SBA lenders. Whether you live in rural America or a metropolitan area, SBA’s Lender Match can help you access capital for your business. Lender Match is a free online referral tool that connects small businesses with participating SBA-approved lenders.

The Office of Advocacy has released its annual report on small business lending. Small Business Lending in the United States, 2013 describes trends in the small business lending market in general. It also provides data on more than 6,000 U.S. lenders, showing the emphasis on small business lending in their portfolios. The report covers the time period June 2012 to June 2013 using Call Report data from the FDIC, and supplements this with Community Reinvestment Act data from 2012. During this period, small business lending improved, but at a slower pace than large business lending. Soon afterward, small business lending entered positive territory. A data update is provided to cover these trends, extending into the first quarter of 2014. The report and research summary are available on Advocacy’s webpage, at https://www.sba.gov/advocacy/small-business-lending-united-states-2013 .

WASHINGTON – The U.S Small Business Administration (SBA) announced its third highest year of SBA lending to date, surpassed only by SBA’s two record years of supporting more than $30 billion in FY 2011 and 2012. In FY 2013, SBA supported more than $29 billion in lending to America’s small businesses, giving small businesses critical access to the capital they need to start and grow their business. “Under President Obama, SBA lending has reached record levels and we continue to get more capital into the hands of small business owners than ever before,” said Acting SBA Administrator Jeanne Hulit. “Small businesses are the engine of our economy, and reaching our third highest year of SBA lending in FY 2013 demonstrates the strength and resiliency of America’s 28 million small businesses as they continue to recover from the Great Recession and drive our economy forward.” One of SBA’s primary missions is to ensure that small business owners have access to the capital they need to sta...

This annual report reviews the small business lending activities of institutional depository lenders, including commercial and cooperative banks, federal and state savings banks, and savings and loan associations. The lenders are ranked on their overall small business lending nationally and on a state-by-state basis. Small business loans are defined as business loans under $1 million; micro business loans are those under $100,000; macro loans are those between $100,000 and $1 million. Two data sources are used—Consolidated Reports of Condition and Income or “Call Reports” and reports required under the provisions of the Community Reinvestment Act—CRA reports. Should you need further information, please feel free to contact Victoria Williams at (202) 205-6533 or advocacy@sba.gov

From the New York Times : I remember learning in business school that business is supposed to be rational and efficient. Markets sort themselves out, supply and demand curves eventually intersect, and spreadsheets and algorithms lead to smart decision making. In my life as a loan broker, however, it often seems as if the opposite is true. Every day, as I work with small-business owners, I make decisions that are at least partially emotional. And this is particularly tough, because I know that sometimes small-business owners may take my guidance as the last word on whether they can expect to obtain capital, which may affect their dreams and livelihoods, as well as other people’s jobs. So somewhere I have to find a balance between rational decision making and my own moral compass.

This report is an update to Advocacy’s annual publication that provides information on the lending activities of depository institutions in the United States. The U.S. economy continued to recover and improved moderately during the second half of 2011 as some economic indicators turned upward. Financial market conditions were to some extent supportive of economic growth, but the credit supply for smaller firms remained tighter than for larger firms relative to historic norms.

The Quarterly Lending Bulletin for the second quarter, 2011 [PDF] , presents a brief analysis of the current small business lending situation and shows a drop in loans outstanding to small businesses.

Record $12 billion 1st Quarter Followed By Return to Pre-Recession Levels WASHINGTON – Spurred in part by unprecedented loan volume in the year’s first quarter, small business loans backed by the U.S. Small Business Administration in FY2011 reached the highest mark in the agency’s history, supporting over $30 billion, continuing the rebound begun in 2009 and returning to healthy pre-recession levels in the final three quarters of the year. “SBA-backed lending continued the upward trend we saw last year,” SBA Administrator Karen Mills said. “Due to the Small Business Jobs Act and a return to pre-recession lending levels, over 61,000 small businesses had access to capital. Small businesses are the backbone of the economy and SBA has been there to help them rebound through difficult times over the past few years. First through the Recovery Act and then through the Small Business Jobs Act and new SBA lending programs, SBA has provided small businesses with the tools they need so th...

Following is the full statement from SBA Administrator Karen Mills: “In just three months since the Small Business Jobs Act was signed into law, SBA supported more than $12 billion in lending to small businesses and entrepreneurs across the country. SBA is on the front lines with small business owners and our lending partners every single day. I’m very proud that as a result of those close relationships and partnerships we were able to quickly put this significant amount of capital into the hands of our nation’s largest job creation engine. “The loan enhancements of higher guarantees and reduced fees first implemented as part of the Recovery Act have been a vital resource for tens of thousands of small businesses at a critical time when lending markets had dried up. Beginning in February 2009, these loan enhancements engineered a significant turnaround in SBA lending, including driving record-high levels of SBA lending in recent weeks. The end result is that the agency helped put m...

from the THE WHITE HOUSE Office of the Press Secretary, via the SBA Press Office President Obama Outlines Latest in a Series of New Small Business Proposals Successful SBA programs expanded to increase working capital, help businesses refinance WASHINGTON – Friday, February 5, in Lanham, Maryland, President Obama proposed the expansion of two critical Small Business Administration (SBA) lending programs, aimed at allowing small businesses to refinance and increasing limits for working capital. These are both legislative proposals designed to help small businesses through what continues to be a difficult period in credit markets. President Obama said, “The true engine of job creation will always be businesses. What government can do is fuel that engine: by giving entrepreneurs and companies the support to open their doors, expand, and hire more workers. Today, we're taking another step towards assisting small business owners get the capital they need to grow and hire.” SBA Administr...

The last two years have seen a decrease in business loans from lending institutions, despite the best efforts of the government and other organizations that assist businesses with securing financing. Below are some articles that can help you secure a loan for your small business. Come Prepared - Small businesses can improve the chances of getting a bank loan by laying the groundwork (The Albany Business Review) Trust Me - For entrepreneurs looking to gain credibility, it's often the little things that count (The Wall Street Journal) How to secure financing for your small business (SmallBusiness.com)

This month, the U.S. Small Business Administration announced the SBA’s Patriot Express Pilot Loan Initiative for veterans and members of the military community wanting to establish or expand small businesses. Here's a Hispanic Business.com article that links to the new section of the SBA website.

The number of small business loans outstanding under $100,000 increased 25 percent between June 2004 and June 2005, according to a report released by the Office of Advocacy of the U.S. Small Business Administration. The increase came mostly from credit card use by small business. The report also noted that the number of small business loans outstanding between $100,000 and $1 million increased 5 percent during the same period. The report, "Small Business and Micro Business Lending in the United States, for Data Years 2004-2005," uses both Consolidated Reports of Condition and Income (Call Reports) from June 2005 and Community Reinvestment Act (CRA) reports for 2004 to review small business lending activities by financial institutions. This year's edition expands to include savings banks, savings and loan institutions, and American Territories. The report also ranks lenders in each state by their small business lending activities, as well as ranking large national financia...