Smart Borrower Blog

Archive for the ‘Business Borrowing’ Category

Small Business Borrowing Moves Upward In May

A sign that the US economy might see some improvements in the coming months, US small business borrowing moved upward during the month of May. Compared to a year ago, lending took a surge to the highest level small business lending has seen since July of 2008. According to an article on Reuters: The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to U.S. small businesses, rose 26 percent in May from a year earlier. Small business lending is critical to the economy and with lending up this could be a good indicator that in... more »

Small Business Lending Surges in April

The latest survey from PayNet Inc shows that small business loans increased significantly in April over the past year, a hopeful sign for the economy in an otherwise dismal news week. The Thomson Reuters/PayNet Small Business Lending Index, a measure of total loan volume to small businesses, jumped up 17 percent compared with April 2010, making nine consecutive yearly double-digit gains. However, borrowing by small businesses was down 1 percent from March of this year. “The fact that small businesses are hanging in there is a good sign for the economy,” said William Phelan. PayNet president in an interview as... more »

Big Banks are (Slowly) Opening the Lending Spigots

The latest survey from the Federal Reserve found that some banks are in fact starting to loosen their almost impossibly high lending standards as the economy starts to pick up. “The April survey indicated that, on net, bank lending standards and terms generally had eased somewhat further during the first quarter of this year,” the Fed wrote in its quarterly survey of senior loan officers. The impetus for this easing may have been an improvement in borrower credit-worthiness. The report found that 55 percent of domestic banks saw better credit quality among their large and middle-sized loan applicants. Thirty-five percent... more »

JPMorgan Chase Steps Up Small Business Lending

This should make some small business owners breathe easier. JPMorgan Chase announced yesterday its plans to increase 2011 funds for small business loans to $12 billion, a 20 percent increase from last year. “Small business owners are not only our neighbors, but also the entrepreneurs that hire half of the employees in the United States. It’s critical that we support small businesses as they continue to fuel the economic recovery across the country,” said Michael Cleary, CEO of small business lending as quoted in a Portfolio.com article. There is probably more behind this move than just a moral responsibility to... more »

2011: Brighter Year for Small Business?

The latest study from credit tracking company Equifax reveals that small business bankruptcies are trending downward, hinting at better conditions ahead for the country’s entrepreneurs. From the fourth quarter of 2009 to the fourth quarter of 2010, 10 of the top 15 metropolitan areas with the most small business bankruptcy petitions showed a yearly decline. The average drop for the top 15 areas was 6.16 percent, a respectable descent. However, some areas did show increased bankruptcy petitions, especially metro areas in California. “For small businesses, the road to economic recovery was marked by a number of challenges in 2010 and... more »

UPS Store Now Offering $22.5 Million in Franchise Loans

United Parcel Service’s UPS Store, which is the largest retail shipping outlet in the world, just announced that it is making funds totaling $22.5 million available for franchising UPS stores. Both new franchise loans as well as loans for new buyers of current locations will be offered. The business loans will be arranged by Bancorp Inc. and Franchise American Finance. $15 million will be available for new location development and the remaining $7.5 million will be available for lending to new owners of current locations. UPS is offering the financial assistance in an attempt to meet their goal of 120... more »

Banks Start to Ease Lending Standards for Large Corporations: What about Small Businesses?

Banks are finally starting to ease lending standards at least for large corporate clients, according to a new survey from the Federal Reserve. According to the survey, banks have felt an increase in competition over the last few months and as a result they are reacting and making some loans easier to get. While big companies and corporations are seeing the benefit, it is yet to be seen whether or not the lending will trickle down to smaller businesses, whether many new jobs will be created as a result and so on. From the Federal Reserve Report: The January survey... more »

Small Business Funds Poised for Release

The $30 billion small business stimulus fund promised by President Obama in early 2010 is finally about to be unleashed for use by the nation’s smaller banks. According to a BusinessWeek.com article, banks have made an impressive showing in terms of applications for the new program. Small Business Lending Fund program director Jason Tepperman said he was “pleasantly surprised” at how many lenders have applied since last month when applications first became available. The program funds are available to the 7,000 banks across the country with assets of less than $10 billion, although those on the Treasury “troubled” list may... more »

Americans Are Getting Fiscally Fit, and It Shows

It may have taken the Great Recession to break Americans out of their ‘pay as you go’ mentality, but they are starting to act more financially responsibly now. At least so say the latest reports from the Big Banks, according to a recent BusinessWeek article. Specifically, more American consumers are paying their bills on time, and defaulting less on credit cards and mortgages. Says BusinessWeek, “the reports are a sign that Americans are feeling more comfortable about their finances. Personal spending powers about 70 percent of the U.S. economy, and most economists say a fiscally fit consumer is critical to... more »

Federal Small Business Funding Starts Being Used In Michigan and North Carolina

The states of North Carolina and Michigan are the first to start getting money to lend to small businesses. The funds are coming from a new federal program that is part of the Small Business Jobs Act. The Act was signed into law by President Obama last September. The federal program plans to dish out 1.5 billion to help small businesses across the country who are deemed credit worthy, receive loans. Loans have been difficult to come by for these businesses during a time when banks have been tightening underwriting loan standards. While the federal government is putting in just... more »