Contrary to what some are saying, the financial services industry is indeed lending. In fact, as this recent Wall Street Journal article shows, lending to small business is increasing.
Many of the top small-business banks issued more new loans to small companies in the third quarter. Wells Fargo & Co., for instance, issued $3.9 billion, up from $3.3 billion in the same quarter last year. Bank of America Corp. extended $5.7 billion to small firms, up from $4.1 billion last year, while J.P. Morgan Chase Co. lent $2.7 billion in its last quarter, up 42% from $1.9 billion.
Financial institutions will continue to support small businesses, offering loans to credit-worthy borrowers. Lenders are utilizing second-look programs to ensure loans are made to all credit-worthy borrowers.