Small Business Lending

Ten Years After the 2008 Market Crash, Small Business Lending is Strong

Small Business Loans

NEW YORK, NY (October 12, 2018) - A decade after the market crash of 2008, the world of small business loans is thriving. Approval rates are rising at community banks: 49.8% of funding requests were granted in 2018.

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Louisiana Small Businesses Received $328 Million in SBA Loans in 2018


BATON ROUGE, LA (October 10, 2018) - Approximately 500 small businesses in Louisiana receive $328 million in small business loans from the Small Business Administration (SBA) in 2018, according to a recent SBA report. The report determined that this was an increase of 69% in dollars and 29% in loans since 2017.

“As I say at every opportunity, I am grateful to all our lending partners who value and use SBA guarantees to extend much-needed growth capital to Louisiana small businesses,” said SBA District Director Michael Ricks. “Our increase in lending this year is in large part due to our lending partners’ dedication to lending to the small business community.”

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FDIC: Community Banks Fund 42% of Small Business Loans


ATLANTA, GA (October 9, 2018) - Local banks hold 42% of all small business loans in the United States, a new study by the Federal Deposit Insurance Corporation (FDIC) found.

“Small businesses comprise almost half of private-sector employment in the United States, and banks are the most common source of external credit for these businesses. Despite holding only 13% of banking industry assets, our data shows that community banks hold 42% of small business loans,” FDIC Chairman Jelena McWilliams said. “In light of ongoing consolidation in the banking industry, banks’ ability to meet the credit needs of this important sector is of vital interest to the FDIC.”

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Oakland Establishes Public Bank to Invest Money in Local Community


OAKLAND, CA (October 8, 2018) - Oakland will establish the first city-owned public bank in the United States, with ownership shared by Oakland, Richmond, Berkeley and Alameda County. Local residents’ distaste for corruption on Wall Street inspired this initiative, to avoid spending millions on debt servicing and transaction fees at big banks and reinvest money into the community.

The Bank of North Dakota is the only other public bank in the US and has proved to be a success thus far, earning $136 million for the state last year in its thirteenth consecutive year of profits. $30 to 50 million of these profits fund education, infrastructure projects and disaster relief programs each year.

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Ohio Credit Unions Gain Popularity


COLUMBUS, OH (October 4, 2018) - Recent studies indicate that increasing numbers of Ohioans are choosing to bank with credit unions; Ohio credit unions served 2.83 million people and provided $177,273,023 in financial benefits in the past year.  

“Every month we track our growth,” Painesville Credit Union CEO Lori Guzzi said. “In the last 12 months, we have grown 250 members. So, we’ve had a steady increase every month in the last year for membership growth. I think part of it is the word is getting out about credit unions.”

“We know our members,” Guzzi added. “We’ve been here for 76 years, so we have had families that have four generations banking with us... I just think that attests to the stability here.”

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Venture Capital Limited by Geography, Race and Gender in 2017


BOSTON, MA (October 1, 2018) - Fewer than 10% of venture capital-backed startups had a female co-founder, and fewer than 1% had an African-American female cofounder in 2017, according to a recent report by Pitchbook. The study also determined that 75% of all venture capital went to companies in California, Massachusetts and New York.

Increasing access to venture capital is imperative in 2018, to empower and maximize the potential and impact of entrepreneurs of all genders and races throughout the United States.

Despite the lack of venture capital funding, companies with a woman on the founding team outperformed all-male companies by 63% in a ten-year study by First Round Capital. Racially diverse companies outperformed industry norms by 35%, according to a McKinsey study.

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North Carolina Business Owners Seek Relief After Hurricane Florence

SBA Loans North Carolina

WINSTON-SALEM, NC (September 28, 2018) - Small business owners in North Carolina affected by Hurricane Florence face an uncertain path to recovery.

The Small Business Administration offers disaster loans specifically for victims of Hurricane Florence.

"I'm doing some research now about (Federal Emergency Management Agency) grants, disaster loans, and claiming flood insurance so I'll be prepared to advise clients in the aftermath," said financial planner Matt Stevens.

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Latino Small Business Owners Drive $700 Billion of Growth Annually, New Study Finds


WASHINGTON, DC (September 25, 2018) - Latino small businesses earned $700 billion last year and grew 31.6% since 2012 - more than double the average growth rate of small businesses in that period - according to a new study by the US Hispanic Chamber of Commerce.

"Providing access to better and faster financing options will allow Latino-owned businesses to build upon this momentum," Manuel Chinea of Popular Bank said.

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Community Bank Lending to Small Businesses is Increasing

Small Business Loans

WASHINGTON, DC (September 19, 2018) - Community bank lending to small businesses grew by 5% from 2010 to 2017, and total business loans grew 11% from $689 billion in 2010 to $765 billion in 2017, the US Government Accountability Office reports.

“Community banks — generally small and locally focused institutions — are important sources of credit to small businesses,” the report said.

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Entrepreneurial Spirit Reignites Community Banks

North Carolina Business Loans

RALEIGH, NC (September 18, 2018) - Community banks are vital for entrepreneurs - they provide 44% of all small business and farm loans, and are the only banks available in one out of five counties in the United States. As small businesses themselves, local banks can thrive and grow by pursuing key principles of entrepreneurship.

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GFA Federal Credit Union First to Fund Legalized Marijuana Industry in Massachusetts


GARDNER, MA (September 17, 2018) - GFA Federal Credit Union will become the first credit union to bank for the newly legalized marijuana industry in Massachusetts.

“When the Commonwealth legalized medicinal and recreational cannabis, we knew the multi-millions generated by this fast-growing industry would soon become a safety issue, if unbanked,” CEO Tina Sbrega said. “Our board of directors recognizes the need to provide banking services for the safety of our citizens in reducing the cash on the streets, and I applaud them for their vision and commitment to providing public safety.”

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Indiana Grants Help Small Businesses Thrive

Indiana Business Loans

LAKE COUNTY, IN (September 7, 2018) - The Lake County Economic Development Commission is awarding $750,000 in grants to support small businesses, specifically targeting rural and minority-owned ventures.

The initiative’s goal is to create as many jobs as possible, while also providing new buildings and industrial equipment for food processing and manufacturing companies.

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Businesses Pursue Loans Before Federal Reserve Boosts Interest Rates

Business Loans

WASHINGTON, DC (August 30, 2018) - Federal Reserve interests rates are projected to rise from 2% to 3.1% by the end of 2019, indicating that the longer businesses delay to secure loans, the higher the interest rate they will pay.

“Business owners continue to invest in their firms and are finding success in securing capital, according to our latest figures,” CEO Rohit Arora says. “Smaller banks are a good source of capital for startups and companies with less than stellar credit rating.”

Read the article in Black Enterprise here.

Maine Towns Finance Business Growth


PORTLAND, ME (August 29, 2018) - Numerous towns throughout the state of Maine are issuing economic development loans to spur business growth and job creation.

The city of Portland loaned $3.04 million since 2013 to 38 different projects ranging from a daycare to tortilla manufacturers.

“The city’s commercial loan program exists to assist Portland businesses that are not yet bankable or that have a financial gap with a bank to support business growth,” Nelle Hanig, Portland’s business programs manager said.

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State Funding Awarded for Startups in Rural Virginia

Small business financing

COVINGTON, VA (August 17, 2018) - Governor Ralph Northam allocated Community Business Launch awards of $45,000 to five towns to fund training and business development support for entrepreneurs in rural southwest Virginia.

A portion of the funds will support The Gauntlet, a business competition modeled after NBC’s Shark Tank to win seed money.

“We look forward to new businesses opening and current businesses expanding throughout these communities that will only enhance the vibrancy and quality of life in each of these downtown districts,” said Secretary of Commerce and Trade Brian Ball.

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Tech Partnerships a Major Success for African-American Bank in South Carolina

Business financing

COLUMBIA, SC (August 15, 2018) - South Carolina Community Bank rebounded from the financial crisis by developing a new network of Fintech partnerships.

“As a small bank, we don’t have a large innovation lab budget; we don’t have the thousands of people focused on product development that large banks have,” CEO Dominik Mjartan said. “But we do have some very good partners we’re working with that could really transform our ability to innovate and then scale the innovation.”

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South Dakota, Tennessee, Alaska, Michigan and Utah Rank Highest for Supporting Small Businesses

Business Financing

SIOUX FALLS, SD (August 14, 2018) - The states of South Dakota, Tennessee, Alaska, Michigan and Utah rank highest for being friendly and supportive to small business owners, according to a new national survey of 7,500 business owners.

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Urban Synergy in Action supports new businesses in Connecticut


BRIDGEPORT, CT (August 13, 2018) - The new initiative Urban Synergy in Action (USA) is building an incubator to provide office space and business development support to the growing tide of urban entrepreneurs.

“It’s important to see people who live in your neighborhood or reflect the demographic of the neighborhood, opening up businesses and having a slice of that American dream… of being able to contribute, create jobs and be a fabric of the community,” said the director of Bridgeport’s Small and Minority Business Enterprise, Fred Gee.

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RAIN Launches to Stimulate Entrepreneurship in Oregon


LINN COUNTY, OR (August 10, 2018) - Oregon’s Regional Accelerator and Innovation Network will begin funding entrepreneurs and startups in eight participating towns in Linn and Benton Counties.

Corey Wright of RAIN aims to build new entrepreneurial ecosystems in the area, with the use of asset mapping.

“I figure out what types of resources are available and what doesn’t exist, that might be used by local entrepreneurs," Wright said. "Let’s say there are several people in Brownsville making specialty food products in their homes. Is there a local commercial kitchen with whom they could contract to expand their production capabilities?”.

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Vermont Sees Growth from Investing in Local Businesses


VERGENNES, VT (August 6, 2018) - The previously quiet town of Vergennes, Vermont has seen a boom in new businesses since the town was declared an “opportunity zone”, encouraging investment in local businesses.

The program offers tax incentives to investors who fund businesses based in the zone. Vermont now has 17 opportunity zones that include 85,000 people and 7,000 local businesses.

"Now, this is a destination," business owner Jeannie Pelsue says. "We've got fabulous stores and people come from all over."

Read the article here.