Standard & Poors downgrading the U.S. credit rating from AAA to AA+ is the first time since the credit rating business started that America’s credit rating has been downgraded.
In other words, in 2010 the 25 biggest banks held 32 percent more in deposits than those banks did in 2006 — but approved 30 percent less in S.B.A. loans.* The decline appears to be related to losses the banks suffered when borrowers defaulted on one type of 7(a) loan during the crisis, and perhaps as well to the difficulty large banks have in making profits on smaller loans in general.