How are small businesses financed?
Commercial banks are the largest suppliers of debt capital to small firms, supplying more than 80 percent of lending in the credit line market and, with the exception in leasing, more than 50 percent in other markets, such as commercial mortgages and vehicle, equipment, and other loans. In June 2004, small business loans outstanding owed to commercial banks amounted to $522 billion. Very large banks with assets of at least $10 billion are making a significant percentage of small loans of less than $100,000.
