photo credit: =Lonely.X.Poet=
I recently came across an article located on Business Week that may give some small business owners peace of mind and a new sense of hope for their businesses future. Everything that has a beginning must have an end, this is even true for depressions and recessions, and we may be looking at a turning point in small business credit.
A recent survey showed that one bank out of the 55 that were surveyed had stated they were easing up on the standards for small business credit. Now, I know many people are going “wow, one bank out of 55”, but the thing to remember is that it’s a start! Someone has to be the first one to make the move on easing the standards and soon others will follow suite.
The studies before this one were showing no sign of banks easing up on their credit standards, so even just one bank shows signs of easing their credit standards it is considered to be a very good sign and a positive step towards the right direction for small businesses.
On the whole, the survey shows that we may be approaching a turning point where credit standards for small business borrowers level off and begin to ease. But for now, many more banks are still raising credit standards than easing them, albeit not as severely as over the last year.