Small Business Association Loans—Are Lenders Providing Much Needed Cash To Businesses?

Small business owners have been requesting more access to capital from lenders in order to grow their businesses, but it seems that small business loans backed by the Small Business Administration is about the only way that a business owner can obtain the funding needed to grow their company.

SBA loans are guaranteed by the Small Business Administration and have been helping businessmen and businesswomen to not just improve their business, but also hire new workers, which in this job market is vital at the present time.

However, small businesses have been complaining that without a Small Business Administration loan there is no way lenders will lend, and even with a SBA guarantee there is no sure thing when it comes to getting the money.

Yet, lenders have been telling a different story.  While there are many banks that simply won’t lend to businesses for fear of the economy causing business owners to default, more and more lenders are saying that regulators are slowing lending to small businesses.

Systems are set in place to keep lenders from making loans that may do harm to the economy, as with the mortgage lending catastrophe, it seems that a lot of banks are unable to lend to small businesses because of these regulators.

Bank examiners are being blamed for the low volume of loans being made, but at the same time politicians are asking banks to up their lending practices.  No matter the problem, it is certain that more effort needs to be made for finding solutions to the lending constraints that are hurting small business owners.  If more jobs are needed, small businesses must have the funding to create them.