Small businesses that apply for loans with community banks are the most successful and most satisfied, according to a
new report from seven Federal Reserve Banks . The survey
of nearly 3,500 small-business owners in 26 states found that community banks extended at least some of the financing requested by loan applicants to 76 percent of applicants surveyed. Large banks approved 58 percent of applicants.
The Wall Street Journal reported that large banks are making fewer loans to small businesses, declining from $72.5 billion in 2006 to $44.7 billion in 2014.
According to the survey, micro-firms successfully got financing 33 percent of the time with big banks compared with 60 percent of the time with community banks.