In 2010, President Obama signed into law the Small Business Jobs Act, which approved $9.1 billion in small business loans. Small businesses allow for more jobs to be created in an unsteady and wavering job market. Thanks to these loans, small business created roughly 180,000 new jobs per month in 2011, compared to 68,000 in 2010. So, which banks give out the most money to small business owners?
Wells Fargo is at the top of the list, with $15 billion in small business loans being given out in 2010. During the first quarter of 2011, the bank had already lent $3.7 billion more than in the first quarter of 2010. Wells Fargo currently has a second look process for all loans and trains their employees across the US to advocate for the small business owner.
Next is JP Morgan Chase, who committed to $12 billion in small business loans in 2011, up $2 billion from 2010. In the first quarter of this year, the company has already approved 100,000 loans. In order to help process the increased number of loan requests and ensure that each request gets a fair review, the company hired 250 additional small business bankers this year. They, like Wells Fargo, also have a second look policy, so each request that gets turned down will have a second person at the bank to look at it.
The third big name in small business lending is Citibank. In 2010, they pledged $6 billion toward small business loans, up from their 2009 figure of $4.5 billion. Their 2011 numbers are not available, but first quarter lending has increased from last year. The bank has also streamlined their application process, re-evaluated it’s approval criteria, and instituted a second look policy. Small business entrepreneurs are also given counseling from the company’s small business solution center to help them improve their business plans.
The dollar amounts from each bank are the amounts approved by the Small Business Administration (SBA), who plays an active role in lending money to small businesses. The SBA provides guidelines for loans, and the loans are then made by partners of the SBA, such as banks. The SBA guarantees that all loans will be repaid, which takes away some of the risks to lending partners.
For anyone thinking of starting a small business, now is the time to seek out a loan, especially from one of these banks invested in helping out the small business owner. Many bank allow you to apply right on line, directly at their websites. If you’re looking to start a small business or fund an existing company, things are finally looking up.
Wells Fargo is at the top of the list, with $15 billion in small business loans being given out in 2010. During the first quarter of 2011, the bank had already lent $3.7 billion more than in the first quarter of 2010. Wells Fargo currently has a second look process for all loans and trains their employees across the US to advocate for the small business owner.
Next is JP Morgan Chase, who committed to $12 billion in small business loans in 2011, up $2 billion from 2010. In the first quarter of this year, the company has already approved 100,000 loans. In order to help process the increased number of loan requests and ensure that each request gets a fair review, the company hired 250 additional small business bankers this year. They, like Wells Fargo, also have a second look policy, so each request that gets turned down will have a second person at the bank to look at it.
The third big name in small business lending is Citibank. In 2010, they pledged $6 billion toward small business loans, up from their 2009 figure of $4.5 billion. Their 2011 numbers are not available, but first quarter lending has increased from last year. The bank has also streamlined their application process, re-evaluated it’s approval criteria, and instituted a second look policy. Small business entrepreneurs are also given counseling from the company’s small business solution center to help them improve their business plans.
The dollar amounts from each bank are the amounts approved by the Small Business Administration (SBA), who plays an active role in lending money to small businesses. The SBA provides guidelines for loans, and the loans are then made by partners of the SBA, such as banks. The SBA guarantees that all loans will be repaid, which takes away some of the risks to lending partners.
For anyone thinking of starting a small business, now is the time to seek out a loan, especially from one of these banks invested in helping out the small business owner. Many bank allow you to apply right on line, directly at their websites. If you’re looking to start a small business or fund an existing company, things are finally looking up.
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