There have been complaints from many companies that small business loan opportunities have not been available over the past months as lenders tighten their lending practices when additional funding prevented the SBA from guaranteeing a higher percentage on certain small business loans. Yet, there have been companies who have turned to small business microloans as a way to find the financial assistance they need to keep their organization afloat.
Microloans are available from the SBA and other lending institutions, and there are reports that show these types of small business loans can be greatly beneficial for small organizations. Companies that have sought to expand, buy new equipment, or simply gain the funding they need to handle a large number of clientele or business, have been unable to do so through due to lending restrictions for small business loans in many cases.
However, the new small business bill has generated more funding for small business loans and, companies who are looking for microloan opportunities may also find lending options through the SBA. According to the Small Business Administration website, their microloan program has a maximum amount of 35,000, which small businesses may borrow, but the average loan is around 13,000. Again, funding from microloans can be used to purchase inventory or equipment, or as simply a way to invest in one’s business so that opportunities for growth may become more available.
Understandably, when it comes to small businesses, job creation the main focus. However, there are arguments that simple small business lending opportunities will not be enough to create employment opportunities, but there are those who feel that by allowing businesses access to capital through small business loans, a company may be able to increase in size or productivity, which would necessitate the addition of workers in the future.