Shrinking Big Bank Market Share Re-Opens Door for Small Bank Lending

According to Bloomberg Businessweek, a recent decline in big banks' market share in the small business loan market is actually good news for small business owners. With countless small business borrowers out there struggling to get credit, the article says small banks need to recoup market share if lending to small companies is to rebound.

Before the financial crisis, big banks controlled a growing share of the small business loan market, rising from 31% to nearly 39% from 2005 to 2009. But, since we've "exited" the recession, that trend has reversed, with big bank market share dropping below 38% in 2011. That opens the door for smaller financial institutions, (who historically loan more to small business), to lend the money these small businesses need and rebuild their place in the community.

Read More at Bloomberg Businessweek:

http://www.businessweek.com/articles/2012-07-09/to-boost-small-business-credit-think-small-banks