According to today's Wall Street Journal (Prior Loans, Future Pain?), commercial and industrial business loans has risen at a 52% annual rate since late July. Based upon Federal Reserve data, this increase in business loans is the fastest growth rate for an 11-week period in more than 30 years.The Wall Street Journal explained this increase in part on banks having to extend loans for M&A activity for which they had committed, but expected to lay off to investors and never hold on their books. Interestingly, the only small business mentioned in the article said that the bank said no - Bank of America declined Morgan Bros. Bag Co. when it requested an increase in its line of credit.
Sure would like to see the report the Journal used as a basis for this report - it's not consistent with the information I hear directly from my bank funding sources in the small and middle markets.
What have you heard?
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Tags : business loans , credit crunch , small business , Wall Street Journal , bank loans
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