SBA AND LOANS TO SMALL FIRMS

SBA loans are down substantially for a number of reasons: (1) most are made by big bank with problems, too much red tape for small firms (2) big banks counted on securitization which dried up so they could not relilquify for more lending (3) loan demand is way down, inventory and capx plans are at 35 year low levels. This is erroneously attributed to the “credit crunch”. NFIB’s 500,000 “bank customers” dont report an unusual curtaillment of credit, only 3% say credit is their top problem. At Liberty Bell Bank, assets grew nearly 30% last year, we are lending as are large numbers of other banks that i am familiar with. Bill Dunkelberg.