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The number of small business loans of under $100,000 increased 25 percent between June 2004 and June 2005, according to a report by the Office of Advocacy of the U.S. Small Business Administration. The increase came mostly from credit card use by small business owners. The report also noted that the number of small business loans outstanding between $100,000 and $1 million increased five percent during the same period.

"Access to credit is vital for small business survival," says Dr. Chad Moutray, chief economist for the Office of Advocacy. The office produces its annual lending report, he says, "So that trends in small business finance are made clear."

"One evident trend is the increase in the number of micro business loans outstanding. Coupling that increase with the small increase in the dollar amount outstanding of those loans shows that the small business credit card market continues to be quite dynamic," Moutray concludes.

The report, "Small Business and Micro Business Lending in the United States, for Data Years 2004-2005," uses both consolidated reports of condition and income, known as call reports, and reports from the Community Reinvestment Act (CRA) to review small business lending activities by financial institutions.

This year's edition of the report is expanded to include savings banks and savings and loan institutions. The report also ranks lenders in each state by their small business lending activities and also ranks large national financial institutions. Lenders are ranked on their overall small business lending, not by lending under SBA programs.

The Office of Advocacy, which is the small business watchdog of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user friendly formats, and it funds research into small business issues.

The SBA's advocacy office is an independent voice for small business within the federal government. Its chief counsel, appointed by the President, advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers.

For more information, a complete copy of the report, and rankings of lenders by state, visit http://www.sba.gov/advo and, for more information on the Office of Advocacy of the U.S. Small Business Adminnistration, call 202-205-6533

Article ID: 39