Good news for small businesses this week as the Federal Reserve reported that small business lending has rose in the fourth quarter by a large margin. It its survey of senior loan officers in the banking sector, the Fed found that small businesses made the largest leap within a quarter since 2005.
Contributing to this trend, Citibank recently announced a 30-percent increase in its small business lending, while J.P. Morgan Chase reports an increase in 2011 by 52 percent. Biz2Credit, an online marketplace that matches entrepreneurs to lenders, reported in December a 62-percent approval rate, a jump from 49 percent in the beginning of 2011.
The news comes on the heels of an announcement by President Obama of plans for the 2013 fiscal budget that includes cutting capital gains taxes on investments, providing a tax credit for hiring and doubling the amount of allowed deductions for start-ups. The plan will be submitted to Congress on Feb. 13.