In the past months, small business loan opportunities were created through legislation that allowed the Small Business Administration to guarantee a higher percentage of SBA loans that were made from certain lenders. However, when those funds were exhausted many businesses claim that lenders were no longer making the loans that they desperately needed.
Businesses said that these loans were needed so that their companies can grow, expand, take on more projects, and ultimately hire more workers. However, many lenders were unwilling to make these loans, and many business owners were unwilling to acquire debt, but tax credits were then offered to small businesses who hired new workers.
These tax credits did somewhat help when it came to adding jobs for the vast number of unemployed men and women who are in need of some form of employment. Yet, over the past months there has been concern that not enough has been done to help create jobs that are desperately needed. However, legislation is being proposed that may not only extend hiring tax credits but may also provide a higher guarantee on small business loans that are made to companies who are in need.
When it comes to job creation, there has been a debate over whether tax credits will create a better environment where jobs are made available or if small business loans are what is needed in order to open job opportunities. Tax credits have been an excellent way for employers to save money on new hires but it’s obvious that businesses also need capital so that they can grow their company, which would also require adding new jobs.
New legislation that is set to be taken up when Congress returns to session is hoped to provide small business loan opportunities for companies who are in need of funding at the present time. Also, those businesses who are hesitant to acquire debt may also benefit from this legislation as there are proposals for the extension of tax credits that may help companies who hire new workers benefit as well. Ideally, an environment will be created where companies who want to borrow can do so but those businesses who do not wish to acquire debt can still benefit if they hire new workers.