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As Banks Recede from Small Business Lending, Community Lenders Step in to Fill the Gap
Posted By Sadaf Knight On May 18, 2012 @ 9:43 am In Uncategorized | Comments Disabled
The Support Center  released a report yesterday titled “Small Business Lending in North Carolina: The Increasing Role of Community Lenders,”  which examines small business lending patterns of banks, Community Development Financial Institutions (CDFIs), Community Development Credit Unions (CDCUs), and credit unions in the state (we previously posted about this on our blog here ). As large banks recede from small business lending, the report shows that community-based lenders have been stepping in to try to fill the lending gap, particularly in low-wealth communities where, in many cases, the small businesses they serve have been turned away from mainstream banks. Specifically, the report found that:
At a time when North Carolina’s unemployment remains high and many of our local economies are still struggling, the state should support all avenues of creating jobs and wealth– which is what CDFIs, CDCUs, and credit unions are working toward in communities across the state. But because many of them are much smaller institutions, compared to banks, they need additional public and private support in order to meet the growing demand for affordable capital. The report outlines three ways that community lenders can be supported:
While traditional banks are able to provide loans to many entrepreneurs, community lenders support those businesses that are outside the financial mainstream. With these supports, community lenders would be able to expand their reach and help fund more entrepreneurs in North Carolina. By targeting these different markets, banks, CDFIs, CDCUs, and credit unions can together meet the capital needs of a wider range of small businesses, create jobs, and ultimately get more people to work.
The full report can be downloaded here .
Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org
URL to article: http://pulse.ncpolicywatch.org/2012/05/18/as-banks-recede-from-small-business-lending-community-lenders-step-in-to-fill-the-gap/
URLs in this post:
 The Support Center: http://www.thesupportcenter-nc.org/
 “Small Business Lending in North Carolina: The Increasing Role of Community Lenders,”: http://www.thesupportcenter-nc.org/downloads/Small%20Business%20Lending%20in%20NC.pdf
 here: http://thesupportcenter.wordpress.com/2012/04/02/small-business-loans-in-nc-wheres-the-money-going/
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