Green business, green careers and job training
Solutions that build smart communities with green careers and sustainable businesses!
HOME
EDITOR'S BLOG
FEATURE ARTICLES
GET STARTED

Save on Career Education through Lorman Education

Our readers are offered a discount on Lorman seminars and courses. Check out their business, management and legal offers at this link to qualify for our discounts. They also offer green business training opportunities. Please visit http://www.lorman.com/training/CaliforniaGreenSolutions for a complete listing of courses. Register online or call Lorman at 866-352-9539.
Home > By DEPARTMENTS > Finance and Financial Management for Green Business > Investment and Funding for Green and Sustainable Programs and Business Development

Small Business Loans are Profitable for Some Banks

The business case for bank loans to small businesses and the picture comes up positive!

Find green business solutions
california incentives green solutions The Small Business Administration Office of Advocacy has studied the business case for bank loans to small businesses and the picture comes up positive! You might want to know these research figures before you make your next visit to a bank for a loan.

This study investigates the contribution of relationship lending to the value of banks by estimating the market premium placed on the small business loan portfolios of banks.

The complete report is available online, but here are the high points:

  • Small business loans in the form of commercial and industrial loans with original amounts of $1 million or less add 10.5 cents to the value of a banking organization for each dollar of such loans held in the bank’s portfolio relative to larger commercial and industrial loans.
  • This value-enhancing effect emanates from the sample of the smallest banking organizations, those with assets less than $500 million.
  • The value-enhancing effect arises primarily from holdings of the smallest category of commercial and industrial loans, those with original amounts of $100,000 or less, with the differential effect for the smallest category of banks being over 28 cents per dollar of such small business loans.
  • The authors find no evidence that small commercial real estate loans, which tend to be transactional rather than relationship loans, provide a differential effect on bank value beyond that produced by commercial real estate loans more generally. However, commercial real estate loans do produce value for the smallest category of banks.

The full text of this report and summaries of other studies performed under contract with the U.S. Small Business Administration’s Office of Advocacy are available on the Internet at www.sba.gov/advo/ research.

A copy of this study is located at sba.gov/advo/research/rs301tot.pdf, and the research summary is available at: sba.gov/advo/research/rs301.pdf. Should you need further information, please feel free to contact Charles Ou at (202) 205- 6530 or advocacy@sba.gov.



Edited by Carolyn Allen, owner/editor of California Green Solutions
Green Solution Providers
Green companies directory
Submit
your green solutions - business, nonprofit, government program.
It's free.
| finance | small business |

Share in Social Media

Sign Up For News & Information
Subscribe to our free solutions newsletter
BONUS DOWNLOAD (PDF)
"Ten+ Tips for Greening Your Office"

SUBSCRIBE HERE
Read prior issues: California GreenLines

Search For Green Solutions

Custom Search
Green Career Center
Green Job Wizard
Career Certifications Directory

green job training certifications
Green Biz Center
Solutions For Green
Directory of Green Companies

Solutions for Alternative Energy

rose in natural systems
Green Living Center
Solutions for Green: Consumers

Solutions for Remodeling

Backyard Nature Center

INSTANT GREEN POLL

"Knowing is not enough; we must apply. Willing is not enough; we must do." Goethe
RECENT ARTICLES
SITE NAVIGATION
ABOUT US

Related Articles

More States are Moving Toward State Owned Banks

SBA introduces new women business program

Basel III Reforms | Credit Trends for Small Business

Related Green Resources

Marcom Tips
Interactive & Video Tips

Career Resources

We encourage lifelong learning to support sustainable communities and provide these select resources to help you pursue green and sustainable self-development:

Lorman Business Training Directory of On-line Business and Compliance Classes

Green Job Wizard Job and Career Certifications Directory

Job & Career Resources

Governance
Management
Manufacturing
Operations
Facilities
Transportation
Finance
Sales & Marketing
Human Resources

Green Economy

Business Sectors
Natural Resources

Solutions For Green

About Us ~ Privacy Policy
Contact Us ~ Home

Text Link Ads

AD: Place your link here

ABOUT CALIFORNIA GREEN SOLUTIONS

We help you green your career, workplace and community by connecting you to quality green, sustainable and high performance resources. California Green Solutions focuses attention on effective solutions that sustain our natural systems. You can support our editorial work by supporting our advertisers and spreading the word about best practices and green solutions.
California Green Solutions is a publication of Carolyn Allen ~ Copyright ©2006-2030 Carolyn Allen

B2B | Job Certifications | Alternative Energy | Events | Green Directory | LED Lights | Remodeling |
CONSUMERS | Backyard Nature | Senior Health | MultiMedia Marketing | Marketing | Networking Events | Japan |