The latest survey of banking practices shows that while standards are easing for residential mortgages, auto and other personal loans, standards on business loans toughened in the fourth quarter of 2015. The trend seems to be hitting small business owners hard, especially those like remodeling contractors who may need to finance active projects.
The Federal Reserve Bank’s January 2016 Senior Loan Officer Opinion Survey on Bank Lending Practices shows that some banks have tightened lending requirements and terms on commercial and industrial loans. The trend is expected to continue.
I suggest to small business clients that we must make an extra effort to explore and reconsider the entire range of non-traditional business financing options.