Many small business owners are looking for funding through small business loans, yet some business owners have said that lenders are unwilling to provide small businesses the capital that they need in order to grow and expand. Lenders on the other hand, says small business owners are not taking these loans due to trepidation over the still uncertain economy.
There are businesses that are ready to take a small business loans and the Small Business Administration has been providing guarantees on small business loans from a variety of lenders. The Obama administration has extended the small business recovery lending that has helped the SBA to guarantee more loans at a higher level.
The Small Business Administration will be providing what is called “recovery lending” through May, as this program was recently extended. The SBA guarantees loans which are made by lenders to small businesses and as of late it seems that many lenders are only willing to lend if it is through the SBA.
Small businesses are being asked to create jobs and many feel that they are the key to combating unemployment, however, it’s being said that since many lenders will not borrow that there either is still fear from small business owners or businesses have no reason to expand or grow.
Yet, for those businesses that are still looking for the capital to increase their business this extended lending from the small business administration is hoped to provide the funds that businesses need to not only become more profitable but also hire more workers.