Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWARK, N.J. – Some community banks are not enthused about the SBA’s micro loans. They’re dropping the loans from their offerings, according to the Community Bank Competitiveness Survey 2005 survey from the ABA Community Bankers Council and ABA Banking Journal. Four percent of banks surveyed said they have dropped SBA micro loans. Over the past 12-month period, bankers dropped the following in order of most commonly to least commonly: a tie between factoring products and auto leasing at 6.9%; equipment leasing at 6.6%; and state-guaranteed loans at 4.7%. The SBA micro loans were the fifth most commonly dropped business product. Bankers were more inclined to offer credit lines to businesses at more than 84% followed by working capital loans at 80.6%. A little over 52.5% surveyed offered SBA 7(a) loans with 50.3% offering accounts receivable financing, 48.8% doing merchant card processing; and 45% offering SBA 504 loans. Nearly the majority surveyed, 94%, said construction loans and commercial mortgages were their most commonly offered business credit-related products. Commercial term loans were offered by 91.6%, the survey showed. Business credit cards are offered by only 35.3% of the community banks surveyed. SBA micro loans are offered by 27.5%, equipment leasing by 26.3%, state-guaranteed business loans, 24.7%, business auto leases, 9.4%, and factoring, 6.3%. A comparison of business credit cards vs. consumer credit cards offered indicates that fewer banks offer business credit card service (35.3%) than offer consumer credit card service (45.3%).

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.