Economic uncertainties spooked southeast Wisconsin small business owners and startups from seeking loans during November, resulting in more than 50 percent drop in U.S. Small Business Administration-backed loan activity.
The number of loans that closed in November decreased to 31 from 65 in November 2007, a drop of 52.3 percent. The dollar-value of the loans fell 52.2 percent, to $5.5 million, from $11.5 million a year earlier.
The figures are from the U.S. Small Business Administration Wisconsin office in Milwaukee and cover Milwaukee, Waukesha, Ozaukee, Washington, Racine and Kenosha counties.
The causes of the slowdown were the same as those slamming the overall economy: plummeting stock and home values, rising unemployment and the credit crunch, said bank executives and SBA Wisconsin director Eric Ness.
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