After ten quarters of no change, could an increase in small business loans be coming soon?
A new survey showed that there may be increased lending to small businesses in the near future.
The report, conducted by FICO and Professional Risk Managers' International Association, found that 70 percent of risk managers predicted requests for loans from small businesses will increase in the next six months--and 89 percent of them predicted the approval rate of such credit/loan applications will remain steady or increase slightly.
FICO's chief analytics officer and head of FICO labs Andrew Jennings noted that the positive sentiments expressed by the bank risk managers surveyed could imply potential increase in investing and hiring in the upcoming months.
Only 39 percent, down from 47 percent in Q4 of 2012, believed that the small business loan supply will fall short of the demand.
The survey included responses from 255 from risk managers working at banks, credit unions, mortgage lenders and firms specializing in wealth management, investment or retirement services.
In the fourth quarter of 2012, small business lending increased for the first time in 10 quarters, going from $584.1 billion in September 2012 to $586 billion in December 2012.
JANA KASPERKEVIC is a graduate of Baruch College, City University of New York, where she earned a bachelors degree in Journalism and Political Science. She covers start-ups, small businesses, and entrepreneurship for Inc. Her work has appeared in The Village Voice, InvestmentNews, Business Insider, and Houston Chronicle, among others. She lives in Brooklyn. @kasperka