I recently spoke to the owner of a small company who is buying a new building. He is in an industry—energy-related—that happens to be doing quite well right now. Banks, he said, are tripping over themselves to loan him money. Three different lenders are competing for his business, which means that he's been able to go to back to them to get better terms.
This anecdote is completely at odds with the notion that banks aren't lending enough to small businesses, and are thus hampering economic recovery and job growth. I've long wondered how much of the perception on the part of politicians that banks aren't lending enough is tied to the perception on the part of bankers that there aren't enough businesses in good enough shape to lend to.
A new survey out from the management consultancy George S. May International sheds some light on the issue.

















RSS