While banks have stepped up lending to small businesses, much of the funding is going to the biggest of the small firms that have higher levels of cash and collateral. Firms with less than $1 million in revenue are recovering more slowly than their larger counterparts, one bank official said. Some banks are focusing on lending to professional practices, such as physicians and engineering firms, which aren't so reliant on discretionary consumer spending. Also, there remain some differences in the way banks and government agencies report lending data.
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