The Small Business Administration in the Sacramento region approved 112 loans for the first two months of the federal fiscal year, about 40 more than a year ago. And the federal agency loaned $47 million for the first two months. That’s more than double the lending for the same two-month stretch in 2008.
It’s a glimmer of hope for an economic recovery, especially after a brutal 15 months, when cash-strapped banks — even after receiving federal funding — did very little lending to small-business owners. Many business owners in the Sacramento region have complained about applying for loans at several banks, only to be turned down even with good credit ratings and money-making operations.
Small-business lending is critical to the economy, since small business employs more than 80 percent of the work force.