The new small business lending leaders

August 18, 2009 | By Jim Kim

When it comes to small business lending, CIT ruled the roost for a long time, but its spectacular fall has changed the order. Forbes notes that the lenders' share of Small Business Administration loans fell from 6 percent of the market to 1.1 percent in the first nine months of the year. It's now in sixteenth place.

The new sheriff in town is Wells Fargo, which accounts for 7.7 percent of the market. Combined with Wachovia's share, it accounts for nearly 10 percent. U.S. Bank comes in second with a 3.6 percent share. TD Banknorth came in third with 1.9 percent. The real story is that most big banks, Wells Fargo aside, have all but put the kibosh on small business loans. JPMorgan Chase's volume fell more than 80 percent. Wells Fargo ended up on top by dint of the fact that it's volume dropped less than others.

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