Wall-street is seeing a comeback in terms of lending to small businesses. The reason for this is 12 investment firms are arranging $1.38 billion of initial stock offerings, in-order, to pump in cash to nation’s biggest job creators.

Business development corporations (BDCs) are formed by leading corporations that typically lend to small businesses having annual revenue less than $500 million. This is in accordance to filings with US Securities & Exchange commission. The ongoing BDCs wave is the greatest in at-least seven years now.

Trillions of dollars are being flooded into the financial system by the Federal Reserve in the span of last three years. But, obtaining credit still remains a challenge for borrowers who do not have a direct access to capital markets. Unemployment is hovering above 9 percent, so in any event if credit continues to filter down, then the recovery of labor market would be slow.

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