Many small businesses have been seeking business loan opportunities or hoping to take advantage of tax breaks that have been offered in order to either grow their business, hire more workers, or simply use funds for purchases on items like equipment so that they can handle more customers or business. However, over the past months business owners have either been unwilling to take on debt or have been unable to find the small business loan opportunities they seek.
It’s been reported that the Small Business Jobs Act was recently passed and is now set for President Obama’s signature. This bill is said to bring billions in lending so that community banks may be able to provide small businesses with the business loan opportunities they are looking for in order to grow their company.
Also, it’s been reported that some of the Small Business Administration programs that were previously taken advantage of by many small businesses have been expanded, which could, again, help with SBA loans. Financial institutions have been hesitant to lend due to their fear small businesses may be unable to repay their debts, but past legislation that allowed SBA loans to be made with a higher guaranteed percentage loosened up lending practices until these funds expired.
While lending opportunities have been the focus for many small businesses, there are also tax breaks for certain companies and small businesses. Previous tax credits, like those for business owners who hire new workers, promoted job creation in some small businesses and, it is believed, that this current bill for small businesses may create thousands of jobs across the nation.
Yet, many analysts say that until unemployment and the economy improve, businesses may still suffer despite the fact that lending opportunities and tax breaks are set in place. However, again, it’s hoped that with certain tax breaks and lending opportunities, small businesses may begin to hire more workers, which would obviously create more purchasing and capital circulation from consumers, which ultimately would lead to the end goal: growth in our economy.