NEW YORK, May 15 (Reuters) - A top U.S. Federal Reserve official on Thursday lauded the economic benefits of small businesses and cited demand and their limited funding needs as reasons that loans from banks remain flat.
“We recognize that a thriving small business sector benefits all of us,” William Dudley, president of the New York Fed, said at a funding conference.
But “small loans from banks remain flat, partly due to reduced demand from businesses ... however it also may be related to a particular type of credit that small businesses need,” typically loans of $100,000 or less, he said.
Dudley did not comment on monetary policy or the U.S. economic outlook. (Reporting by Jonathan Spicer; Editing by James Dalgleish)