More banks tightened lending terms for small businesses in the first quarter of 2024, continuing a trend from 2023. Many traditional financial institutions fear the current economic outlook and have become more risk-averse. As a result, they are approving fewer commercial and industrial loans (C&I loans), charging more for the loans they do approve, and issuing smaller loan amounts. Generally speaking, banks have been hesitant to lend to businesses since the economic crisis of 2008. At that time, alternative lenders stepped in to support small businesses by providing access to capital when the banks wouldn't. This has also impacted consumer loans, such as mortgages or auto loans. The post Banks Tightening Credit Criteria for Small Business: Exploring Your Options appeared first on United Capital Source.

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