10 Straight Quarters of Tightening Credit for Small Business

Banks are still tightening credit standards for small businesses, but not to the degree they did at the end of last year. That’s according to the Fed’s quarterly survey of senior bank loan officers is just out (summary here, PDF here). More than 40% of banks surveyed said they had raised credit standards for commercial and industrial loans to small firms (under $50M in revenue) in the last three months, but that’s down from 69% in the last survey released in January. This is the 10th straight quarter that a net percentage of banks has reported tightening credit to small firms.

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