Small business growth and survival depends on access to credit. Therefore, credit access is a major concern for many businesses, especially start-ups and small businesses who have limited access to financial markets.
This serious policy issue intensifies during economic downturns and expansions. The U.S. banking system, a major supplier of capital to small businesses, is an important participant in the process. Banks, amongst other lenders, were instrumental in distributing the Paycheck Protection Program (PPP) to small businesses during the pandemic.
This report, “Small Business Lending in the United States, 2020,” presents the lending activities of bank lenders in small business borrowing. The report captures changes in small business lending for the year using Federal Deposit Insurance Corporation (FDIC) data.
Both small (loans $1 million and under) and large (loans exceeding $1 million) business lending increased by double digits from
June 2019 to June 2020. Minority Depository Institutions were instrumental in getting PPP loans to underserved areas during the COVID-19 pandemic. They also experienced double digit