Of the $1.9 trillion dollars in commercial and industrial loans held by FDIC insured institutions today, approximately $296 billion (15%) are smaller than $100k. Small financial institutions have been taking a hard look at how to deliver these loans in a manner that is beneficial to business owners while also taking their own operating costs into account. Since the early 1990s, larger financial institutions have worked to develop scoring models to help increase efficiency and profitability within this segment of the market. Smaller institutions, placing an emphasis on local decision processes and strong ties to the business owner, rarely pursued these techniques. It is clear that small loans to this sector are a challenge to the overhead of the underwriting institution.