This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Bank Sets $500 Million Loan Fund For Miss. Firms

Many businesses, scared of running up debt as sales fell, stopped borrowing during the economic downturn. The same NFIB survey suggests that loan demand hasn't rebounded, even as short-term interest rates have fallen. About 30 percent of survey respondents are borrowing regularly, down from about 35 percent at the beginning of the recession.

Cash has flooded into banks even as the amount of money on loan has fallen. Among Mississippi commercial banks, the ratio of loans to deposits fell to 75.5 percent at Dec. 31, the lowest level in more than a decade, according to FDIC figures. The ratio of loans to deposits is even lower at BancorpSouth, with its $8.5 billion in loans equal to only 63 percent of deposits. At the end of 2007, as the real estate boom imploded, BancorpSouth had $9 billion in loans outstanding, equal to 90 percent of deposits.

BancorpSouth says it will work with the Mississippi Development Authority and the Mississippi Business Finance Corp., as well as with the U.S. Small Business Administration. The SBA ranked Regions as No. 10 and BancorpSouth as No. 11 among large banks nationwide making small business loans under $1 million in 2010-2011, the most recent reported year. BancorpSouth's small lending was heavily concentrated in loans between $100,000 and $1 million.

With bad commercial real-estate loans leaving a sour taste, banks have fought heavily to lend to businesses for other purposes, such as equipment leases.

"I think this is an attempt by BancorpSouth to compete for any good Mississippi loan we can uncover," Darnell said.

___

Follow Jeff Amy at http://twitter.com/jeffamy

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

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.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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