The Government Calls for Increased Lending from Banks

[David J Edwards]

According to the FDIC, lending has fallen for five consecutive
quarters – even though banks have become profitable again and have
started to repay government loans. Banks lent $600 billion less from
September 2008 to September 2009, representing a 7 percent decline.
Banks site a lack of qualified borrowers as the primary reason and
point to the trend of decreased borrowing during recessions.

The goals of banks and the government appear to be in line now with
each bank representative talking about getting aggressive with small
business lending over the next year. Goals for 2010 small business
lending include $5 billion for Bank of America and $4 billion for
Chase.

As banks continue to be profitable, they can be expected to use the
proceeds to repay the government as well as increase their efforts to
make good loans. Small business owners should expect an increase in
the amount of loans available during 2010 compared to 2009. Holding
true to the trend in 2009, a good credit score and steady employment
will likely continue to be important conditions of obtaining a
mortgage.

Sources - The Washington Post & FDIC

Best Regards,

David J Edwards
Real Estate Agent & REALTOR
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-636-0296
Fax: 425-902-1899
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