NEWSRELEASE
For Release: August 12, 2002
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Micro-Business Loans Increased In 2001
WASHINGTON, D.C. - American banks increased their micro-business loans by 10% in 2001, according to “Micro-Business Friendly Banks In The United States”, a report issued today by the Office of Advocacy of the U.S. Small Business Administration (SBA). Designed to help small firms in their search for capital, the report identifies banks in each state that are micro-business-friendly in their lending of amounts under $100,000.
The 10 percent increase in the number of micro-business loans compares to a 6% percent increase in loans of $100,000 to $250,000 and a 7% increase in loans of $250,000 to $1 million. The dollar value of small business lending increased as well with micro-business loans outstanding, as of June 2001, increasing by $5.4 billion to a total of $126.8 billion.
“This report is a tool for small firms seeking capital to help identify micro-business-friendly banks in their state,” said Thomas M. Sullivan, Chief Counsel for Advocacy. “Interestingly, it appears that much of the growth in micro-loans has been due to the promotion of credit cards by major banks and finance companies. That is not surprising since Office of Advocacy research shows that many entrepreneurs finance their businesses with credit cards,” he continued.
The complete report, which ranks small and large micro-business-friendly banks in each state, can be found on the Office of Advocacy website at http://www.sba.gov/advo.
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Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The Chief Counsel for Advocacy, who is appointed by the President and confirmed by the U.S. Senate, directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Issues are identified through economic research, policy analyses, and small business outreach. The Chief Counsel’s efforts are supported by offices in Washington, D.C., and by Regional Advocates. For more information on the Office of Advocacy, visit http://www.sba.gov/advo, or call (202) 205-6533.