Guidant Financial Group Blog

The SBA released data today showing that their flagship 7(a) loans have dropped 18% since this same time last year (see SBA Loans Plummet). Grreeeat. (And I don’t mean that like Tony the Tiger means it.)

The most interesting part of this whole scenario is the tug-of-war surrounding where to place the blame for this plummet in offerings. The small business administration seems to point the finger at the slowing economy, while others seem to think that banking institutions are leaving the loan program altogether.

Whatever the reason, the bottom line is the SBA isn’t lending money like it used to.

Could it really be that demand has lowered and less people are looking to open businesses right now? Or, has the mortgage crisis and subsequent credit crunch left bankers terrified of getting in over their heads?

What do you think?