Banks report strength in small business
The Bank of Northern Michigan is reporting small business growth in northern Michigan.
The Business Resource Lending team tells 7&4 News they are seeing a major shift in Small Business Administration (SBA) lending which is now being used for building expansion purchases or additions, business buy-outs, equipment acquisitions and new project financing.
Brad Dyksterhouse, an executive with Business Resource Lending for Lake Michigan Financial Corporation which owns The Bank of Northern Michigan said, "During all of 2010 and much of 2011, approximately 75% of SBA loans we made went for the purpose of refinancing existing business debt that was previously held at other banks. Recently, however, we're seeing the ratios reverse to where approximately 75% of our SBA loans are now for business growth and only 25% are being used for refinance."
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