PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

AP: Loan Demand Down As Company Owners Turn to Personal Funds

By at 30 May, 2018, 2:34 pm

In a May 29 AP article, business reporter Joyce Rosenberg writes that a late 2017 Federal Reserve survey found that demand for financing fell among companies, with 40 percent reporting that paying operating expenses was a challenge and 30 percent saying it was difficult to get credit.  The piece also reported on President Trump’s signing of the “Economic Growth, Regulatory Relief and Consumer Protection Act,” and how the new banking reform law may boost small business lending:

Small business and banking industry advocates have said that Dodd-Frank, which was passed by Congress in 2010 in response to the banking industry crisis that began in 2008, has sharply curtailed lending to small companies. The U.S. has lost more than a quarter of its community banks in the decade since the financial crisis, according to the Federal Deposit Insurance Corp. While there have been hundreds of bank failures, many small banks have been forced to merge or were bought by larger institutions.

The new law “lifts inappropriate requirements and red tape from smaller financial institutions, which in turn will improve lending to small businesses,” said Karen Kerrigan, CEO of the Small Business & Entrepreneurship Council.

Read the full article here.   

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