It’s not that banks don’t want to see a small business recovery.  In fact, they are indeed under political pressure to lend to SMBs and help build the recovery. 

Yet, Our research indicates that the community banks that typically serve SMBs  just aren’t structured to handle the the highly specialized risk assessments required to successfully underwrite C&I loans.  Nor are they staffed right now to properly manage the rigorous monitoring of these loans.

Dan Drechsel, Ftrans CEO, explains further. 

Next:  Banks say they aren’t lending because there is no demand.  Do you believe that?

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