Small Business Loan Growth Slowing – American Banker

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By Ken McCarthy

More community banks are adding deposit products and fee-generating services targeted at small businesses.

Those efforts are coming at a time when small-business loan growth is decelerating and as banks grapple with thinning margins and more payoffs tied to lower interest rates. Adding products also allows banks to deepen relationships with existing clients, industry experts said.

Small-business loan growth is slowing down, according to data compiled by the Federal Deposit Insurance Corp.

Loans of $1 million or less to small businesses rose by 1.9% in the third quarter from a year earlier, to $645 billion in outstanding balances, a cool-down from the 2.3% growth rate of the prior …