Information Needs of the Bank Loan Officer in Evaluating Loan Requests from Small Businesses Available to Purchase

Commercial loans are a major source of financing for small businesses. To enhance the likelihood of obtaining a commercial loan with the most favorable terms, sufficient information must be made available to the bank loan officer (BLO). Based on a review of the banking literature and a study of 138 BLOs, the author identifies the primary information needs of the BLO, sources of this information, and procedures in processing this information. Findings of the study identify two information sources thatr are within the control of the load applicant. The data from these two important sources could have a significant influence in determining the outcome of a commercial load decision.