Survey: Big Banks Not Making Enough Small Business Loans
BROAD AXE, Pa. (CBS) – Putting Americans back to work will take center stage in Washington this week as Congress returns from its summer recess, but a new survey from a Montgomery County loan adviser finds the biggest banks in the country are only making a small fraction of small business loans.
Small business owners say they can create jobs if they get the capital they need to help grow their businesses. But a new survey from MultiFunding in Broad Axe finds the nation’s top 25 banks ranked by deposits are not doing their fare share of SBA lending.
MultiFunding CEO Ami Kassar says that’s stifling innovation and job growth at a time when the country needs it most, “We’ve given them 60% of all of our money to hold and to take care of and in turn they’re only making 20% of all the small business loans, so the big banks are much less likely to make a small business loan to help a small business.”
He says businesses can turn to smaller community and regional banks, but the pool of money to lend is less. President Obama will present his job plan to Congress Thursday evening (see related story).
Reported by Suburban Bureau Chief Brad Segall, KYW Newsradio 1060