The subprime crisis effects on the financing of SMEs in the US

Abstract EN

This paper aims to determine the effects of the Subprime crisis on the financing of SMEs.

We want to see whether the decline in funding caused by the recent crisis has affected SMEs and large companies.

We will observe that the level of bank lending in US lending to SMEs has increased fourfold compared to large companies after the 2008 crisis.

We can conclude that the subprime crisis has had a positive effect on SMEs, which contradicts the idea that the crisis always has adverse consequences on economic activity.

We can explain the increase in bank loans to SMEs by good confidence of these banks for small business and the decline of these loans to large companies by poor confidence.

Finally, we can say that SMEs are favored over large firms and gain competitiveness after the crisis.