Small Business Lending in the United States, 2016

George Haynes, September 2018

Small Business Lending in the United States, 2016 examines small business lending by depository institutions using the Consolidated Reports of Condition and Income (Call Reports) for 2016 and Community Reinvestment Act (CRA) data for 2015 from the Federal Financial Institutions Examination Council. The report informs the small business community of developments in the small business loan markets. Small business loans are defined as business loans of $1 million or less based on the Federal Deposit Insurance Corporation’s conventional definition. In addition to the report on national small business lending trends, extensive data tables list the top small business lenders providing credit to small firms in each state. Small business stakeholders can use the data tables to research the small business lending of banks in their states.

Overall Findings

Both the Call Reports and the CRA data indicate that small business lending has improved gradually in the last few years, but it still remains below pre-2008 levels. All of the recent improvement occurred at larger banks, and small business lending by smaller banks continued to decline. Total growth in small business loans outstanding was driven by commercial and industrial (C&I) loans. Small business loan growth by minority depository institutions was positive for both commercial real estate (CRE) loans and C&I loans.

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