Small businesses that have been looking for capital to grow their businesses over the past few months have looked to loans guaranteed by the Small Business Administration as a way to increase their business. While there are reports that SBA loans are up, many business owners still need capital.
With unemployment still a problem many small businesses have been asked to up their hiring and create more jobs. Many businesses would like to do this, and are able to do so, but there has been the problem with lenders that are unwilling to open their books and lend more to small businesses.
Obviously, the fear of defaults is one of the main reasons banks aren’t lending, but there is also the fear that the economy isn’t on stable ground and banks are keeping money in their vaults as fears over the housing market loom as well.
However, there are Small Business Administration loans available and small business owners may want to look to smaller community banks for the funding they need and for SBA loans.
While getting an SBA guaranteed loan isn’t a sure thing, small business owners that are looking to grow their business should be aware that these loans are out there, but it may take some work to get them.