As the five-year anniversary of Lehman Brothers approaches, small businesses continue to struggle to secure the financing they need to run and grow their businesses, according to a recent survey by Merchant Cash and Capital (MCC), a leading business cash advance and financing company.
Read More: http://pioneercapgroup.com/small-business-lending-still-depressed-five-years-after-the-collapse-of-lehman-brothers-according-to-new-survey/
U.S. small business optimism dipped in August as owners worried about the economy’s near-term outlook, but gains in sales expectations and hiring plans hinted at a pick-up in the pace of economic growth.
Read More: http://www.cnbc.com/id/101020053
At the end of June 2008, just months before the collapse of Lehman Brothers prompted credit to seize up, there was $327 billion in small business loans outstanding, according to the Federal Deposit Insurance Corp. Five years later, the value of small business loans had fallen 12 percent, to $289 billion. That’s probably a conservative estimate of the toll that the financial crisis took on banks’ willingness to make small loans. Earlier this summer, the Cleveland Fed reported that small-business lending fell 78 percent from the summer of 2007 to the end of 2012, accounting for inflation.
Read More: http://www.businessweek.com/articles/2013-09-10/what-do-small-businesses-need-banks-for-anyway
You can’t understand the current state of the U.S. economy without understanding the role of small businesses. Big companies have been performing well for the past four years, thanks in part to huge support from the Fed in the early days after the meltdown of the financial system, but the small business sector is barely growing at all, if the monthly survey from the National Federation of Independent Business is to be believed.
Read More: http://www.forbes.com/sites/ianshepherdson/2013/09/10/small-businesses-are-the-missing-key-to-a-full-economic-recovery/
The capital markets are eager to provide liquidity to middle market companies in growing sectors of the economy, according to Neil Wessan, Group Head of CIT Capital Markets at CIT Group Inc.(NYS: CIT) cit.com, a leading provider of financing and advisory services to small businesses and middle market companies. This view, and others, are presented in “Capital Markets and The Middle Market” (cit.com/wessan), the latest in a series of in-depth executive video Q&As featured in the award-winning CIT Executive Insights video series (cit.com/executiveinsights).
Read More: http://www.dailyfinance.com/2013/09/09/capital-markets-open-for-business-with-middle-mark/
Capital expenditures – purchases of assets that will benefit a company for at least one year – dropped dramatically during the Great Recession. Federal Reserve data showthat capital spending of non-financial companies declined by 35 percent between 2007 and 2009, when measured in inflation-adjusted terms.
Read More: http://smallbiztrends.com/2013/09/small-business-capital-spending-remains-weak.html
Small businesses have historically contributed more than their share to overall employment growth in the United States. But during the recent recession, the rate of net employment losses of small businesses exceeded that of larger businesses. Sharp cuts in the rate of gross job gains at small businesses appear to have been a major factor explaining the larger net employment losses for this group. The drop in the rate of job gains reflected slower business creation and a lower rate of hiring among expanding small businesses.
Read More: http://www.frbsf.org/economic-research/publications/economic-letter/2013/september/small-business-job-growth-employment-rate/
In response to recent arguments that the SBA should be abolished, Charles H. Green for the small business finance newsletter Coleman Report answered, “Of course not, silly goose.”
Read More: http://www.deseretnews.com/article/865585885/Should-the-Small-Business-Administration-be-abolished.html
More small businesses may be shifting into expansion gear, as a mom-and-pop loan-volume index rose to a six-year high in July.
Read more: http://smallbusiness.foxbusiness.com/finance-accounting/2013/09/04/small-business-lending-jumps-in-july/#ixzz2ec7MwS5p
U.S. small-business owners’ capital spending intentions have been trending upward this year; the 26% who now say they are planning to increase spending is up from 20% in the end of 2012. Still, business owners aren’t yet as optimistic about their capital spending as they were prior to the recession. From 2003 to early 2008, owners were much more likely to say they were planning to increase rather than decrease capital spending. Today, they are about equally as likely to say they will decrease it as increase it.
Read More: http://www.gallup.com/poll/164177/small-business-owners-capital-spending-plans-brighten.aspx?utm_source=tagrss&utm_medium=rss&utm_campaign=syndication