Many small business owners have stated that they want more access to small business loans, capital, or tax incentives so that they can help their businesses grow and hire more workers. Past legislation had offered things like SBA loans or tax credits to small businesses who are in need of capital or incentives to hire. However, once funding for these type of assistance plans, like a higher guarantee an SBA loans, expired many business owners said that access to capital became almost impossible.
While there are mixed opinions and views on small business lending, a new small business bill may soon be finalized if Senators can agree on amendments. It’s hoped that this new small business bill, which could be passed soon, will provide access to small business loans from community banks. Many businesses have said that lenders are unwilling to make small business loans, especially since SBA funding no longer allows for the coverage of a higher percentage of these types of loans.
However, many lenders have stated that there are many businesses who simply do not want to borrow at the present time as economic uncertainty has also made businesses cautious with their borrowing practices. While there are some lenders who are still making small business loans, some lenders who are not, businesses who want to borrow, and businesses that are cautious, it’s hoped that the new small business bill will provide the environment and incentives that will allow those businesses who want a loan the opportunity to obtain capital.
Ideally, many feel the environment which small businesses may thrive would be one where they were given access to capital, which would allow them to expand their company, take on more clients, buy new equipment, or hire new workers. There many economists who believe that until more Americans are provided the job opportunities they need, spending will dwindle and businesses will suffer.
There is concern that many lenders and businesses do not want to take chances on small business loans until the economy gets better. There is fear on the part of both business owners and lenders that a company could borrow money but have their business slow to a point where they are unable to repay this debt. However, there are those who feel that unless chances are taken and businesses invest in themselves then the economy will continue to grow at a slow pace.
While there is no certainty that the small business bill will be passed in the coming days, it’s hoped that the Senate and House will be able to pass this piece of legislation soon since it could provide small businesses access to more capital and tax incentives that may help them if they hire and retain new workers. Obviously, small businesses are being looked to for job creation but many small business owners say that unless they have access to capital then hiring at the present time is simply not a possibility.