Small business loans have been asked for by many companies who are in need of extra capital which they can invest in their business and grow their company. However, there have been complaints that small business lending has been down as incentives from the Small Business Administration expired in past months. However, it is hoped that in September Congress will take up new initiatives to not only provide funding to the SBA but also extends small business tax credits for those companies who hire.
Over the past months, SBA loans were more easily available to business owners who were in need of capital for their company. When the Small Business Administration was providing a higher guarantee percentage on these loans, more banks were willing to lend. Obviously, many small businesses are in need of capital so that they can take on more clients, buy equipment that will allow the service a larger number of customers, and create an environment where they need more workers.
Yet, there are complaints from many small businesses still who say that lenders are not doing all they can to provide small business loan opportunities to companies in need. However, there is also hope that the current tax credit available to small businesses who hire unemployed workers will either be extended or similar credits will be proposed in the coming weeks.
While there are reports that indicate larger financial institutions have been loosening their lending practices for small businesses, there are mixed feelings about small business loans and their potential to create jobs. Many argue that small business loans do not prompt companies to hire more workers, but incentives like the HIRE Tax Credit have allowed more businesses to add to their workforce.
Ideally, legislation that is believed to be taken up in September will provide the SBA with the funds to guarantee a higher percentage of loans made from various financial institutions, which may open up lending for companies and need, but also, tax credits may be proposed or extended which will allow companies who can add more workers to do so without incurring excessive costs.