Lending for Small Firms Easing as Fewer Owners Cite Capital Worries

Lending for Small Firms Easing as Fewer Owners Cite Capital WorriesSmall businesses are finding it easier to borrow the working capital they need, according to various reports.
A survey from the National Federal of Independent Business found that only 4 percent of small-business owners said their credit needs were not being met, matching an historic low.
Business owners who said their credit needs are satisfied amounted to 32 percent of respondents, matching recent highs in November 2013 and September 2012.
Small firms in particular are finding it easier to borrow from big banks with lower interest rates.
Small-business loans approved by large banks in December rose to 17.6 percent from 17.4 percent  the previous month, according to the index compiled by Biz2Credit, which helps l business owners connect with lenders.
That’s the highest since Biz2Credit began tracking the data in early 2011. At that time, big banks approved just 12.8 percent of small-business loans. However, that still represents of half of pre-recession levels.
USA Today reports that the biggest factor the surge in big bank lending growing profits and cash flow that business owners have seen since the end of the recession in 2009, said Biz2Credit CEO Rohit Arora.
“The bad years of 2009 and 2010 are going away,” he told USA Today. “With home values climbing, he says, many small-business owners can use home equity as collateral.
Meanwhile, many banks are slowly easing credit standards that were tightened by regulators after the 2008 financial crisis.
Nearly 12 percent of large banks surveyed by the Federal Reserve in October said lending standards for small businesses eased somewhat over the previous three months — while none said standards tightened.

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