Big Banks Rely On Small Businesses


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According to author Steve Strauss of USA Today, there is a misperception in today's economy that small businesses tend to bank at smaller banks; that actually the vast majority of small business loans are done by big banks. What is less well known, is that big banks equally rely on small business. To highlight his point, Strauss interviewed Robb Hilson, small business executive with Bank of America, to explain the relationship of small businesses and big banks.

Hilson disagreed with the notion that access to credit is a problem for small business owners, citing a recent survey that found 78% of those who applied for a loan within the last two years were approved. He also said more than half of BofA's small business loans go to businesses that make less than $250,000. "We try and make every good loan that we can," Hilson said, "But note that I said 'good loan.' We are committed to lending responsibly. Look, making loans is our job, and doing so helps everyone -- we get more business, small businesses get the money they need, jobs are created, and it helps the communities we all live and work in. We like to make loans." To increase their chances of approval, Hilson said small business owners must be able to demonstrate repayment ability and that a good business plan is essential.