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Small Banks in Delaware Less Likely to Fund Small Businesses
Published on Apr 19, 2011
Read our article, 'Small Banks in Delaware Less Likely to Fund Small Businesses' at 'Time to Start Up,' the small business blog by BizFilings.
The rate at which small banks in Delaware hand out initial financing for small businesses in the state has decreased sharply in recent times, the News Journal says.
This means that new players have stepped into the void left by those smaller local institutions, the newspaper reports, naming Bank of America and Wells Fargo as two of the biggest players in the market, and adding that the the presence of non-bank lenders and community development funds has also increased.
The state's WSFS Bank underwrote $3.9 million in small business loans in 2008, according to the News Journal, but that figure fell all the way to $782,00 just two years later. Small Business Administration loans have also begun to dry up for those in the process of starting a business.
Fortunately, the SBA avoided the budget ax that many had feared in the run-up to the last-minute compromise measure earlier this month that averted a government shutdown. The administration even received $25 million back that had been removed by congress in February.