Treasury Report Shows Drop In Small-Business Loans
WASHINGTON -(Dow Jones)- Nine of the largest banks to receive money through the government’s $700 billion financial market rescue program cut back lending to small businesses in January.
The total volume of small-business loans outstanding at the banks fell 1% in January, the U.S. Treasury said in a report released late Monday. New loan originations for small businesses dropped 28%.
Meanwhile, total average loan balances at the institutions rose 2% to $1.064 trillion in January. Overall new loan originations were down 35%.
