FDIC: small business lending growing
By BuildMyBiz on April 11th, 2013
April 11, 2013 in Finance and Accounting
The latest numbers from the Federal Deposit Insurance Corporation (FDIC) said that small business loans increased from $584 billion in the third quarter of 2012 to $586 billion during the fourth quarter of 2012. It was the first quarter-to-quarter gain the FDIC has recorded since it started tracking small business finance in 2010.
It’s a turnaround for main street finance, which has seen lending decrease over the last few years. At the end of 2010, there were $626 billion worth of small business loans outstanding.
Although the economy may be lagging behind, it’s making a slow climb to recovery in the aftermath of the Great Recession.
A recent IBD/TIPP Economic Optimism Index found that positive sentiment about the economic outlook is growing among Americans. In April, the index rose to 46.2, from 42.2 in February. Also, the personal finance index increased by 0.7 points to land at 52.9 for April.
Speculation that these numbers will result in increased small business sales may be premature, however, the outlook is optimistic.
With the new data from the FDIC, it appears that the Great Recession is a thing of the past. The 88,000 jobs the Department of Labor says were created in March is further indication of an economic rebound.
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