TheStreet.com recently published figures from Bank of America filings noting that the bank had $17.5 billion in small business loans (including credit card lines) outstanding at the end of 2010. That amount fell to $13.6 billion as of Sept. 30, 2011, a drop of 22 percent.

That resulted in a protest from a Bank of America executive who noted the published figures represent credit "used by borrowers and speaks to what small businesses are drawing upon in their credit lines, not the credit that banks approve for borrowers. Using those figures to describe how much banks are lending to small businesses is inaccurate and inappropriate."

He informed the reporter that Bank of America has started publishing quarterly data on its website showing that Bank of America offered $2.9 billion in credit to small businesses in the first quarter, $4.8 billion in the second quarter and $5.3 billion in the third quarter. But is this merely an offer of credit? It might be just an approved credit line that the end-customer may not ever tap. The actual amount of credit drawn down may be more telling indicator.

The fact is that right now, the economy is still ailing and there aren't as many opportunities for small businesses as there would be if growth were raging. Unless the opportunity is there, a small business would be wise to play it safe with its credit lines. Most SBA loans are collateralized personally. At the same time, we have to understand the pressure Bank of America is under to show that it is lending more, even if good credits are much harder to come by. To be sure, Bank of America aims to hire more staff to work on small business opportunities.

For more:
- here's the article
- here's an LA Times article on Bank of America small-biz lending

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