CHANGING THE LARGE BANK LOANS ROLE IN THE SMALL BUSINESS DEVELOPMENT

The article is aimed at analyzing the world and domestic practice of small business lending by large banks and focusing on changing their role as majorfinancial resources suppliers. The article also examines the existing and new forming alternative forms of attracting resources, which, today, better meet the needs and opportunities of small business.An analysis of the statistics showed that lending to small businesses by the largest banks as in Ukraine as in other countries has decreased sharply compared to indicators since 2008 and remains relatively depressed to this day. So the ability to get loans for enterprises has become essentially shorter. The development of almost any business is impossible without external funding. The growing due to own funds will take many years. This condition made small business interested in finding new financing sources. The article examines the dynamic adjustment process aftershock for the loan offer. In Ukraine like in some other countries where the largest banks had high market shares, aggregate credit flows for small businesses became extremely shorter, interest rates staid high or even rise, fewer businesses rose, unemployment rose, and wages fell. The loans flow resumed after 2010, but other lenders intensified, slowly filling the void, but interest rates remained high. The financial resources market is wide enough, and there are both local and external players. And for solving different problems, different tools can be chosen. Venture capital investments are used, for example, for a good start or a powerful breakthrough; long-term loan money or investor’s entry into capital can be used for progressive growth or entry into new markets. A variety of leasing products allow financing not only the purchase the source of transport or equipment, but also rent or buying out warehouse space or offices. There are even so interesting tools such as ICO. It should be concluded that the influence of these factors, as well as the development of block chain technologies and the emergence of alternative (public) forms offinancing and development of social enterprise are gradually leading to the loss of key positions of the banking sector in financing small business projects. All these processes have shown that the financial sources accumulation even for big project can be organized in the way of multiplied microcredit system trough attraction stakeholders. Such examp-les we can mark in various business sectors, for example, in transport –collective financing of the ship construction. Keywords: Small Business, Financing, Loans, Banks, Banking.©Matviienko M.,2021