This week Small Business Administration chief Karen Mills gave America’s top banks a pat on the back for boosting their lending to small businesses over the last 12 months, while separate data showed that funding for the most needy small businesses actually contracted.
When the financial crisis hit, panicked small businesses were scrambling to find credit. Nearly three years later it’s a much different story.
By Terra Terwilliger
The opinions expressed are the author’s own.
Over two years after the start of the Great Credit Crisis, banks are still not lending money. But big businesses know exactly where to go for a quick, interest-free loan … the little guy. Even as corporate profits recover, big companies continue to squeeze their small vendors, stretching out payment terms and writing late checks. Unfortunately, this blatant exploitation is damaging the small business economic engine that drives half of US GDP.
Let the lending begin. Prosper, a popular Web portal that facilitates peer-to-peer loans, announced on Tuesday that it has been given the go-ahead by federal regulators to resume its lending platform in several U.S. states after wrapping up a detailed registration process with the Securities and Exchange Commission (SEC).