Massachusetts small business lending remains resilient despite recession

4/17/2011

During the economic recession, many lenders and banks had to cut back on small business lending to stay afloat. While Massachusetts was affected by the recession as well, a new report from the Massachusetts Bankers Association and PolEcon Research found that state lending did not decline as much as the national average.

Small business commercial loans within the state fell by 10 percent from 2007 to 2009. However, compared to the rest of the country, that isn't much of a decline, with the report noting that small business lending fell threefold more nationwide.

"Massachusetts was hurt badly during this recession, but less so than the U.S. economy," the Boston Globe quotes the report as saying.

Meanwhile, larger banks were especially proactive during the recession. "We actually approached - and continue to approach - our best customers about obtaining more credit,’’ Jefferson George, spokesperson for Bank of America's Massachusetts branch, told the source.

Bank of America has been particularly active when it comes to small business lending. The bank recently hired a number of small business specialists to help meet rising demand among that audience.