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THE SMALL BUSINESS CREDIT GAP BANK

High Cost of Loan Review $1,033/LOAN admin credit banker

BANKS

LOSE MONEY

UNDERWRITING LOANS

UNDER $100,000

$108 BILLION LOST GDP CREDIT GAP small business credit conditions

2015

2.86% 1.01%

NON BANK LENDERS ARE SERVING THE MARKET by making credit available to smaller businesses with prime, near prime & average credit risk

SMALL BUSINESS CREDIT

in the height of the recession DEFAULT RATE NON-INVESTMENT GRADE CORPORATES

15.0%

SMALL BUSINESSES

6.2%

SOLUTIONS

The overall risk of

THE

• 16-21% of requests unfulfilled • 50% of small firms’ credit applications completely denied

LENDING ACTIVITY 2006

IN

LOANS PAST DUE

BUSINESS DEFAULTS

1.82% 1.21%

2.58% 1.54%

SHARE OF GOOD CREDIT QUALITY 2009

2014

92%

96%

BANKS

80%

87%

NON-BANKS

THE encourage 1. ONLINE LENDING INNOVATION not discourage pass thru 2. GOVERNMENT SUPPORT security credit rating 3. PROBABILITY OF DEFAULT standard

closing the gap would grow GDP to over 3% in 2016

Every leader in government believes in supporting small business. SME’s create nearly 80% of new jobs & account for 45% of non-farm private GDP

DATA THOMSON REUTERS/PAYNET INDICIES, REPORT ON ONLINE LENDING TO OCC, PAYNET, ADP, SOURCES: FINANCIAL INSTITUTION CONSULTING, WALLSTREET JOURNAL 9.24.14, NFIB, SBA, FRB OF NY

Credit gap info graph 5 11 16  
Credit gap info graph 5 11 16  
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