Small business use of credit cards increases

Colorado Springs Business Journal, Dec 22, 2006 by Colorado Springs Business Journal Staff

The number of small business loans outstanding under $100,000 increased 25 percent between June 2004 and June 2005, according to a report by the U.S. Small Business Administration's Office of Advocacy. The increase came mostly from credit card use by small businesses.

The number of small business loans outstanding between $100,000 and $1 million increased 5 percent during the same period.

"Access to credit is vital for small business survival," said Dr. Chad Moutray, chief economist for the Office of Advocacy. "One evident trend is the increase in the number of micro business loans outstanding. Coupling that increase with the small increase in the dollar amount outstanding of those loans show that the small business credit card market continues to be quite dynamic."

The report also ranks lenders in each state by their small business lending activities, as well as ranking large national financial institutions.

For more information, a complete copy of the report and rankings of lenders by state, visit www.sba.gov/advo.