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MultiFunding releases its 2010 Main Street Lender Responsibility Index

Findings Demonstrate That Big Banks Are Not Doing Their Fair Share of Lending to Small Business Owners

The banking industry has undergone significant consolidation over the past several years.   As large banks have increased their size and geographic footprint, their share of deposits (all of our money that they hold) has increased as well.  And as a country we rely on these banks to make fair loans to small businesses, in order to create jobs.

In 2010 there were 7,667 bank institutions regulated by the FDIC.  The top 25 of these banks controlled 60.94% of all deposit relationships.  In 2006, the same group of 25 banks controlled 46.5% of all deposits.

As the top banks’ influence has grown, their commitment to small business lending has not kept pace.    In 2010, while the top banks controlled 60.94% of all deposits, they only made 20.36% of all SBA 7A loans.  In 2006, when the top group controlled 46.5% of all deposits, they made 28.93% of all SBA 7A loans.

Top 25 Banks in the United States

The smaller banks held 39.06% of all deposits in 2010 and made 79.64% of all SBA 7A loans.  Meanwhile, the smaller banks controlled 53.5% of deposits in 2006 and made 71.07% of all SBA 7A loans.

All Other Banks in the United States

As the big banks have gotten bigger, their commitment to small business lending has decreased.  However, some of the big banks are committed to lending to small businesses and we’ve ranked the top 25 banks in our index.    Manufacturers and Traders Trust Company is at the top of our list. They controlled .53% of all deposits in 2010 but made .9% of all SBA 7A loans.

In contrast, Citibank and Bank of America, two of the nation’s largest banks, had some of the lowest scores on the Index among the top 25 banks in the country who participate in the SBA 7A program.  These two institutions control 19.4% of all deposits and only approved .61% of all SBA 7A loans in 2010.  Despite ranking at the bottom of the Index, these two institutions ranked in the top two spots on the TARP list, taking over $812 billion in Federal bailout money.

At MultiFunding we believe it’s critical that we find ways to address the disparity in lending between larger and smaller banks in order to maximize access to capital for small business owners.  We believe that many small business owners approach the larger banks first for loans, and get despondent and overwhelmed when they don’t get the answer they are looking for.  This slows down innovation and job creation.

Ranking Bank Name Website % of
% of SBA
7A loans
1 Manufacturers and Traders Trust Company 0.53% 0.90%
2 KeyBank 0.68% 0.88%
3 U.S. Bank 2.24% 2.67%
4 Fifth Third Bank 0.90% 0.79%
5 TD Bank 1.44% 1.09%
6 Wells Fargo Bank 8.97% 6.48%
7 SunTrust Bank 1.33% 0.87%
8 Branch Banking and Trust Company 1.13% 0.58%
9 Regions Bank 1.04% 0.42%
10 JPMorgan Chase Bank 10.80% 4.02%
11 RBS Citizens 0.75% 0.27%
12 PNC Bank 2.03% 0.56%
13 Union Bank 0.64% 0.09%
14 HSBC Bank USA 1.36% 0.11%
15 Citibank 8.40% 0.35%
16 Bank of America 10.99% 0.26%
17 Capital One 1.02% 0.00%
18 The Bank of New York Mellon 1.49% 0.00%
19 State Street Bank and Trust Company 1.10% 0.00%
20 FIA Card Services 1.03% 0.00%
21 ING Bank, fsb 0.82% 0.00%
22 Morgan Stanley Bank 0.60% 0.00%
23 The Northern Trust Company 0.58% 0.00%
24 Charles Schwab Bank 0.54% 0.00%
25 Citibank (South Dakota), N.A. 0.53% 0.00% 

MultiFunding’s 2010 Main Street Lender Responsibility Index

Historical Information

MultiFunding has developed a comparative index to see how the 25 banks in 2010 have ranked in their SBA activity over the past 5 years.  A spreadsheet of this data is available here.


While SBA loan activity is only one type of small business lending, it is the only comparative data that is public ly available.  It is also a good indicator of commitment because the government guarantees these loans, making them less risky and more profitable for banks to make.

The study focuses on SBA 7A loans and does not include SBA 504 loans.  SBA 7A loans are the vast majority of all loans made through the SBA program.

In our study, deposit data is derived from the FDIC website  We use yearend deposit data to mark a calendar year. SBA loan data is obtained from  All SBA data is only for the SBA 7A loan program and is based upon calendar year gross approvals.

Based on the FDIC deposit data and the SBA 7A data, we give each of the top 25 banks in the country a Main Street Lender Responsibility Index and then rank them.  Their score is calculated by taking their SBA 7A loans in a calendar year and dividing the gross approvals by their deposits.  The score is designed to show what percentage of their available resources they are using to lend to small businesses.  It’s also designed to even out the playing field, and show how each bank is doing comparatively, irrespective of their level of deposits.

10 thoughts on “MultiFunding releases its 2010 Main Street Lender Responsibility Index”

  1. Ami –

    this is a good study – i would sugest two small modifications to the methodology that might increase it’s value:

    (1) combined bank charter data at the holding company level – ie: combined Citi who is represented multiple time on list / BofA and FIA, etc – you’ll get a more accurate view of each institutions overall performance

    (2) take out the “banks” with limited purpose business models – State Street, Nothern Trust, Morgan Stanley and others like them …….


  2. Great snapshot of deposits versus lending. And I agree with Frank Mastrangelo’s comment. Will be there be a reprint with his suggestions? Otherwise, I will pass the word. It’s time for small business owners to get smarter and stop doing business with banks that deny them loans. If you are declined for a loan the bank should at a minimum give the business owner sound advice as to what needs to happen to get the money they need within the bank that is denying a loan. Otherwise, where is the value in banking with them?

  3. If not for the Community Reinvestment Act, big banks would avoid SBA 7(a) lending even more because it is such a small profit center compared to their major loan departments. Most don’t even make the effort to sell them in the secondary market.

    By comparison, small community banks get a nice boost to their revenues by selling SBA loans.

    Profits rule.

    Jerry Chautin
    Business columnist
    Volunteer SCORE business counselor, Atlanta, Sarasota & Murphy, NC
    Follow me on

  4. Thank you for some other fantastic article. The place else may just anyone get that type of information in such an ideal manner of writing? I’ve a presentation next week, and I am on the search for such information.

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