Small Business Loans Drop by $15 Billion in Q1

Bank loans outstanding to small businesses declined by 2.4 percent, or $15 billion, in the first quarter of 2011, the Small Business Administration’s Advocacy Office reported.

"Loans outstanding to small businesses continued to decline amid an improving economy. While the rate of decline appeared to slow in the last quarter of 2010, it has turned down slightly in the first quarter of 2011. Remarkably, nominal small business loans outstanding as reported by the Call Reports have declined to levels below those reported in June 2006," the SBA's report said.