Commercial Bank Lending to Small Businesses
The U.S. Small Business Administration Office of Advocacy reports that in 1999, small businesses with fewer than 500 workers employed 53% of the private nonfarm workforce, made 47% of all sales in the U.S., and were responsible for 51% of the private gross domestic product. Lending by commercial banks reflects small businesses’ importance in the economy. With the exception of Florida and the northern parts of both coasts (11 states and the District of Columbia), small business lending (loans less than $1 million) grew at an average annual rate of 10.3% in 1995–2000. Within Fourth District states, growth rates reached 16.9% in Ohio, 5.0% in West Virginia, 4.4% in Kentucky, and 2.3% in Pennsylvania.
Suggested citation: "Commercial Bank Lending to Small Businesses," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-05, pp. 16, 05.01.2001.