This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Why Not to Get a Small-Business Loan at a Big Bank

NEW YORK (TheStreet) -- After the recent negative response to an article on Bank of America's (BAC) small-business lending efforts, we decided to ask a few more industry sources on what is really going on at the big banks.

Ami Kassar, CEO of MultiFunding, a broker for small-business loans, says big banks are far from the best place for a small business to get a loan.

MultiFunding helps small-business owners get the best possible loans at the lowest possible prices. The firm helps small-business owners understand their options in the marketplace and works with them to make sure they're getting the best possible deal from the bank or the lender, Kassar says.

The company works with hundreds of lenders, including large, small and community banks, credit unions, asset-based lenders, accounts-receivable lenders, equipment lenders and merchant-cash lenders, among others.

Last month, MultiFunding launched BankingGrades.com to grade every FDIC-insured bank in the U.S. based on how many small-business loans it makes.

The inaugural report found that some of the nation's biggest banks have the worst performances when it comes to small-business lending. And which big banks were among the worst? Bank of America, JPMorgan Chase (JPM), Citigroup (C), Bank of New York Mellon (BK) and HSBC (HBC).

Banks that had the best small-business lending performances tended to be community banks, it says.

We asked Kassar to elaborate on what he's seeing in the small-business lending space.

What is the typical business you work with?

Kassar: Typically our small-business clients that we work with [have] $2 million of [annual] revenue or less. They don't have a CFO in place. So the owner of the business or the CEO of the business is acting as the CFO as well. We believe that the businesses that we work with represent the definition of a true small business. There is something in to the tune of 26 million small businesses in the United States ... There are different statistics, but the vast majority of them have revenue of $1 million or less.

So is that the definition of a small business?

Kassar: There are a lot of different definitions about what constitutes a small business loan, which makes the data really confusing and difficult to read.

Stock quotes in this article: C, BAC, WFC, JPM, BK, HBC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,424.85 +162.29 1.00%
S&P 500 1,862.31 +19.33 1.05%
NASDAQ 4,086.2250 +52.0640 1.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs