According to a new survey by Wells Fargo/Gallup, it was found that, the lending has seen a surge, as the confidence in small business owners dropped to the lowest level in last seven years.
43 percent (down from 53% in the previous quarter), expect increase in their company’s cash flows, while 13 percent(down from 18% last quarter) companies plan to add jobs. These figures were the lowest ever figures in the 29 quarters history of the survey.
The four largest banks in the U.S. are planning to increase lending to small businesses.
Bank of America promised to increase lending by $5 billion to small business this year, and it has already reached the half this week, with $45.4 billion being loaned in the first half of 2010. It is almost $9 billion more than the last year during same period.
Wells Fargo, increased lending by 30 percent to the small businesses in the last quarter.
Citigroup also said lending to small business had doubled in the last six months, and JP Morgan Chase said its lending (which also includes credit cards) to small business was up 37 percent. JP Morgan said it’s goal is to make $10 billion from new loans to companies with under $20 million in revenue(up from $6 billion in 2009).