Small Business Lending Gives a Boost to Banks
The recession that accompanied the COVID-19 pandemic hit most sectors of the U.S. economy hard, and commercial banks were no exception. A snapshot of bank health in June 2020 showed one bright spot, however: small business lending. Compared with a year earlier, small business loans increased nearly 40% at U.S. community banks. The steep increase in small business lending at community banks was spurred by the introduction of the Paycheck Protection Program (PPP).