The Small Business Administration has been guaranteeing loans for small business owners over the past few months at a higher rate due to governmental assistance that has allowed the SBA to cover a higher percentage of small business loans. However, lenders are more likely to provide the capital that a business needs through a small business loan if it is simply from a guaranteed loan by the Small Business Administration.
Small businesses have been looked to in order to combat the unemployment troubles that our country has been facing over past months and as a result many business owners are asking for capital to grow and expand their business. Many business owners need these small business loans in order to accomplish everything from hiring new workers to buying new equipment.
However, small business owners have said that lenders have not been willing to make the loans that are necessary for their businesses to grow but there have been more success with SBA backed loans. The Small Business Administration usually guarantees small business loans from certain lenders and they provide the funds for microloans as well.
While an SBA loan is not guaranteed, business owners are having more luck when it comes to getting access to capital from a lender who may be unwilling to provide a traditional small business loan. Business owners may want to contact lenders in their area or better yet, consult the Small Business Administration’s website in order to find out what lenders may be offering these loans and other small business assistance tips as well.