Small business lending falls during Q1 2010, says SBA

6/16/2011

According to a report from the U.S. Small Business Administration, small business lending has continued to slip, with the value of outstanding loans falling 2.4 percent during the first quarter of 2011.

As NorthJersey.com notes, this comes after a 1 percent drop in small business commercial loans during the fourth quarter of last year, signifying that many entrepreneurs are just not ready to begin assuming new debts yet.

"[Entrepreneurs are] not looking to buy equipment, expand or hire anyone. They're making do with less and all of those reasons translate to less leverage, less debt," Frank Sorrentino III, the CEO of North Jersey Community Bank, explained to the source.

The lack of demand among entrepreneurs may explain why many community banks have yet to leverage the funds made available by the Small Business Lending Program. According to initial reports, less than one-third of the available funding has been tapped by community banks, indicating that other factors besides credit may be hindering growth.