As the credit freeze continues, many community banks—defined as those having less than $10 billion in assets—are reporting an increase in small-business loans and lines of credit. Economist Paul Merski of the Independent Community Bankers of America said that community banks make 20 percent of all small-business loans, even though they represent only about 12 percent of all bank assets.
According to BusinessWeek, there are a variety of reasons that community banks are attractive during a strong economy—including in-person meetings with loan applicants and willingness to consider businesses that don’t fall into defined parameters. Those factors become even more important for business owners dealing with the downturn.
Source:
BusinessWeek: Community Banks Increase Small Business Loans
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