Small businesses are the backbone of the American economy, making up an estimated 99% of employer firms in the nation. Those businesses in need of capital will find some lenders are more likely to invest than others in helping smaller firms pursue their goals.
Data released by the U.S. Small Business Administration ranks the country’s top lenders based on the dollar amount of total loans outstanding.
In its report, Small Business Lending in the United States, 2013, the agency takes an in-depth look at the financial institutions helping drive small business forward. The report, however, only reflects lenders who have domestic assets of $10 billion or more, which hold 48.9% of outstanding small business loans. Community banks, which often have more favorable loan approval rates, are not reflected.
The report’s rankings are based on the Call Reports from June 2008 through June 2013 and Community Reinvestment Act data for 2012. Depository lending institutions file these reports with regulatory agencies, making in-depth analysis feasible.
Four factors were taken into account to determine rankings: ratio of small business loans to total assets, ratio of small business loans to all business loans, total amount of small business lending by lender and the total number of small business loans.
The report breaks out rankings based on the size of loans with overall classifications of small business loans of $1 million or less, loans of $100,000 or less and loans between $100,000 and $1 million.
Based on call report data only, the top lenders in each category in June 2013, ranked one through five, were:
Small Business Lenders – Loans of $1 Million or Less
- American Express Co.
- First Citizen Bancshares
- Wintrust Financial Corp.
- Zions Bancorp
- Synovus Financial Corp.
Micro Business Loans – Loans of Less Than $100,000
- American Express Co.
- GE Capital Retail Rank
- Capital One Financial Corp.
- JPMorgan Chase & Co.
- Wintrust Financial Corp.
Macro Business Loans – Loans of $100,000 to $1 Million
- Synovus Financial Corp
- Zions Bancorporation
- First Citizens Bancshares Inc.
- Wintrust Financial Corp.
- TCF Financial Corp.
When data from Call Reports and CRA information is combined, the top lenders overall for loans up to $1 million change slightly:
- American Express
- First Citizen Bancshares
- Zions Bancorporation
- Synovus Financial Corp.
- BB&T Corp.
The 2013 study, the 20th annual performed by SBA, concludes that pressure on small business lending is starting to ease up as signs of economic recovery continue to appear. However, it notes that the lending industry continues to feel the effects of mergers and acquisitions. The total number of Call Reports filed in June 2013 was down by 236 from the previous year.
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