Wells Fargo, JPMorgan Chase Largest Small Biz Lenders in 2010

by Kevin Casey on October 29, 2010
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The top lenders to American small businesses? The surprising answer: Giant banks.

JPMorgan Chase approved the most U.S. Small Business Administration 7(a) loans in federal fiscal 2010, while Wells Fargo was the largest lender in terms of gross dollars, according to SBA data.

JPMorgan Chase, the nation’s largest commercial bank, approved 3,386 small business loans, more than two-and-a-half times its 2009 total of 1,250.

It was the second straight year atop the gross dollars list for Wells Fargo, the fourth-largest U.S. bank. It approved more than $856 million in loans to small businesses, up from $678 million in 2009.

Looking at the top ten lenders by both number of loans and by total dollars as barometers, small business credit increased significantly in 2010 from the previous year. The top ten by total number approved 15,940 loans in 2010, up from 13,326 in 2009. The top ten by total dollars approved nearly $3 billion in 2010, up from $2.1 billion in 2009.

Lending data seems poised for bigger shifts in the new fiscal year, which began on Oct. 1, as the impact of the Small Business Jobs Act hit credit markets. President Obama signed the bill last month. Among other features, the legislation more than doubles the maximum amount of SBA 7(a) and 504 loans — the agency’s largest programs — from $2 million to $5 million. The SBA does not make loans, but guarantees them through banks and other institutions.

The jobs act also creates a new $30 billion Small Business Lending Fund, which provides capital and incentives to small banks for small business lending.

Spreadsheet junkies should head over the National Association of Government Guaranteed Lenders website — they’ve posted an Excel file that includes 2010 data for all SBA lenders, plus a slew of other historical SBA stats.

Here are the top 10 in both categories:

TOP 10 LENDERS – LOANS APPROVED – 2010

  1. JPMORGAN CHASE & CO. (3,386)
  2. SUPERIOR FINANCIAL GROUP, LLC (3,134)
  3. WELLS FARGO & COMPANY (2,446)
  4. U.S. BANK (1,609)
  5. HUNTINGTON BANCSHARES INCORPORATED (1,312)
  6. MANUFACTURERS & TRADERS TR CO (935)
  7. AMERICAN HERITAGE HOLDINGS (863)
  8. ZIONS BANCORPORATION (830)
  9. COMPASS BANCSHARES, INC. (808)
  10. BB&T CORPORATION (617)

TOP 10 LENDERS – DOLLARS APPROVED – 2010

  1. WELLS FARGO & COMPANY ($856,742,300)
  2. JPMORGAN CHASE & CO. ($433,690,700)
  3. LIVE OAK BANCSHARES, INC. ($362,448,000)
  4. U.S. BANK ($282,725,200)
  5. COMPASS BANCSHARES, INC. ($224,719,000)
  6. HUNTINGTON BANCSHARES INCORPORATED ($213,136,920)
  7. EXCEL NATIONAL BANK ($180,767,665)
  8. FIRST FINANCIAL BANC CORPORATION ($174,845,000)
  9. CENTRAL BANCORP, INC. ($124,711,900)
  10. AMERICAN HERITAGE HOLDINGS ($120,953,300)
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