Study: Small banks come through for small business loans

Philadelphia-based loan adviser MultiFunding recently released its first annual Ranking of Most Committed SBA Leaders to honor banks that are committed to fostering small business growth through the Small Business Administration loan program.

The top 25 banks made nearly $3 billion in SBA guaranteed 7(a) loans last year, with a collective deposit base of $5.6 million. Wilmington, North Carolina-based Live Oak Banking Company took first place. Also honored were First Colorado National Bank of Paonia, Colorado; Seacoast Commercial Bank of Chula Vista, California; Borrego Springs Bank of Borrego Springs, California; and Celtic Bank Corporation, based in Salt Lake City, Utah.

"The top 25 banks ranked in our study are helping small-business owners in their communities live the American dream during tough economic times," said Ami Kassar, CEO of MultiFunding. "(They) deserve all of our recognition and support for assisting the economy."

In comparison, a separate study by MultiFunding found that the nation's largest 25 banks made $3.6 billion in SBA loans with a collective deposit base of $5.7 trillion. This is representative of a general trend involving big banks reducing their small business loans compared to pre-recession levels.