Small business owners have attempted to gain funding through small business loan opportunities over the past months, but there have been complaints that many lenders were unwilling to make loans to companies without higher guarantees from the Small Business Administration. Previously, funding had expired for SBA small business loans, which many felt to be the cause of this restrained lending on the part of many financial institutions.
However, a recent small business bill has opened up opportunities for the SBA to guarantee higher percentages for small business loans, which many hope will assist smaller companies in growing, becoming more profitable, and ultimately job creation. Small Businesses have been looked to for the much-needed jobs our nation’s unemployed have been seeking, but business owners have said a lack of access to credit had caused trouble.
Yet, there are those who feel that lending and small business loans in general are not the answer to job creation. While there are some companies that can benefit from small business loans, especially those guaranteed by the SBA, the idea that companies will take on debt from loans and hire new workers too doesn’t seem to sit well with some analysts.
Companies have sought out small business loans in the hopes of investing in their organization, growing their company so that more clients or business can be handled, and obviously, more success will create a need for jobs in some cases. However, it’s hoped that with tax credits in place for employers who hire new workers and small business loan opportunities available, more businesses can improve their company and create a need for more workers in the future.