Small Business Loans Available Despite No SBA Incentive–Credit Card Financing An Option

Many small business owners have been seeking an SBA loan in order to fund their company for the purchase of either new equipment, to hire new workers, or simply as a way to access capital which will help them expand and grow. However, the Small Business Administration recently exhausted funding that allow them to guarantee a higher percentage of small business loans. This caused small business lending to drop due to the fact that many lenders are unwilling to make small business loans at traditional SBA guaranteed rates or non-SBA loans.

However, a report on CNN has stated that many banks are lending to small businesses but not through traditional small business loans. Reportedly, banks have been tight with small business loans but they are willing to offer money to businesses in the form of a credit card loan. While credit card loans, or interest rates on credit cards in general, may not be as affordable or have terms that are better than a regular small business loan, companies who are in need of access to credit may be able to use their business credit card for access to these funds.

There is hope that the small business administration will be given additional funding in the near future so that a higher percentage of loans can be guaranteed, but, there is no official word yet to whether this funding will be granted. There are those who feel that small businesses are vital to getting the job market up and running again, but with this lack of lending on the part of many banks, small businesses are stifled when it comes to adding workers.

Oddly enough, Sam’s Club, in an arrangement with Superior Financial Group, has begun a program where they are offering discounted loans to their small business members. One of the driving factors as to why Sam’s Club has proposed this small business lending venture is due to the fact that when a business cannot get the funding they need to operate they will no longer be shopping for items which Sam’s sales. This lending to small businesses obviously has a self-serving factor, but it can also be helpful to those businesses who are unable to obtain a loan for their business from a traditional lending institution.

Small business owners continue to ask for more access to capital so that they can improve their business, hire new workers, and generally grow during this time where many feel the economy can either slide into a recession yet again or began pressing forward and become stronger than before the recession began. However, many analysts say that the only way that this can occur is if jobs are created, and for this to happen, small businesses will need access to capital.