When looking for a bank to offer you loans for your small business, you should keep in mind a report from Banking Grades, a novel grading tool developed by Philadelphia-based Multi-Funding, which says that the performance of the largest banks of the country with regards to lending to small businesses is the worst. Surprisingly, majority of entrepreneurs are not aware of some of the banks with best performance while lending funds to small businesses.
Banking Grades collects data from quarterly FDIC call reports to grade small-business lending performance of banks. Banks that offer 25% or more of their entire domestic deposits as loans to small businesses are awarded grade ‘A’ while banks offering less than 3% of deposits are graded as ‘F.’ Owners of small businesses looking for loans would better look for this grading.
Here’s a list of big banks, with deposits exceeding $10 billion, which ranked the highest for lending to small businesses:
1. Zion’s First National Bank, Salt Lake City. Grade: A (25.44 percent)
2. First-Citizens Bank & Trust Company, Raleigh, N.C. Grade: B (23.8 percent)
3. Synovus Bank, Columbus, Ga. Grade: B (19.25 percent)
4. Chase Bank USA, National Association, Newark, Del. Grade: B (18.34 percent)
5. Bancorpsouth Bank, Tupelo, Ms. Grade: B (17.13 percent)
The biggest banks that were awarded ‘F’ by Banking Grades included Bank of America, JP Morgan, Citibank, Bank of New York, HSBC, Union Bank, Morgan Stanley, Goldman Sachs and Discover Bank.