Small banks tend to make more loans to small local businesses, and the rates on these loans are typically lower than the rates that larger banks charge on the loans they provide to large businesses.

Question

Quizplus · Accepted Answer

Small banks do indeed tend to make more loans to small local businesses, but the rates on these loans are not typically lower than those charged by larger banks for loans to large businesses. Rates are often higher due to the higher risk and administrative costs associated with small business lending.

Small Banks Tend to Make More Loans to Small Local