The Real Deal By Ocean Capital: Banks graded on propensity to provide small business loans
2/14/2012
A tool created by loan financier Multifunding helps small business owners determine which banks are more apt to provide a small business loan, CBS Philly reports.
The tool grades nearly 7,000 banks on an A to F scale, based on the ratio of small business loans to its domestic deposits. For example, according to Multifunding's website, an A grade consists of financial institutions that use 25 percent or more of their deposits to make small business loans. Thus far, nearly 3,000 banks have been granted A grades.
According to CBS, the tool also found that 70 of the 100 largest banks in the nation received grades of C or below, meaning they use between 6 percent and 10 percent of their deposits to grant loans. In all, nearly 400 banks have received a C grade, Multifunding's website reports.
"If you are going to go for a bank loan, go to a smaller bank, go to a community bank, go to a bank that is focused on doing what you need," Ami Kassar, CEO of Multifunding, told CBS.
Ocean Capital, a small business lender, publishes The Real Deal on their website to keep small businesses up-to-date with the latest news and events that affect them. Read more of the latest news here.
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