New Study: Banks Making It Easier for Small Businesses to Get Loans

A new study released recently by Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet Credibility Corp., shows that banks are making it easier for small businesses to get loans and they’re offering better interest rates.

According to the study, 44% of small businesses surveyed last month said they received bank loans within the past three months, an increase from 39% in February and 34% last fall.

Dun & Bradstreet Credibility Corp. CEO Jeff Stibel says that interest rates for small businesses, which used to be at 15%, are falling, with more banks willing to lend to small businesses because they are healthier than they were during the recession and its aftermath.

In addition to the recession causing more small businesses to be more conservative with their finances in order to get their business back on track, businesses have also put a halt on their hiring practices, with 47% of the businesses surveyed saying they have no plans on hiring in the next six months.

The survey, which included responses from 1,251 companies, is a good sign for small business owners who’ve struggled in the past with getting funding for their companies.

Source: ABC News