A new federal report finds that last year, borrowing by small businesses grew five times faster than borrowing by big companies. The report by the Small Business Administration defined any bank loan for less than a million dollars as a small loan.
NHPR’s Jon Greenberg spoke with Liz Ward, Director of Research for the Small Business Development Center at the University of New Hampshire. Ward says one reason small business lending is up is because banks have been reaching out more to small entrepreneurs. It’s a profitable market and smaller loans help a bank diversify. Ward also says, despite the economic downturn, demand for small loans has been robust.
