Reports that new small business loan opportunities may be available from the recent small business bill has many companies who have been seeking a line of credit for their business to begin talks with lenders. Small business owners complained that lending was almost nonexistent when the SBA lost funding to guarantee a higher percentage on loans from certain lenders.
While tax breaks have also been made available for some companies, SBA loans are said to be more available now that new funding has been provided through recent legislation. Many companies use loans guaranteed by the Small Business Administration to expand their business by purchasing equipment, opening new locations, or money from these funds is simply put to use so that a higher number of clients or customers may be handled.
However, there are arguments that small business lending opportunities will not create job opportunities which are needed to combat high levels of unemployment we are still facing in our nation. There are some companies who have stated that without small business lending opportunities and funding from small business loans, they cannot hire new workers, but there are many analysts who say the majority of businesses will not hire new workers after they take on debt.
Yet, those who feel small business loans are not conducive to creating job opportunities, do say that tax breaks for employers can be more beneficial when it comes to creating more jobs. However, it’s hope that this recent legislation will not only provide tax incentives for more companies to hire, but also small business loan opportunities for companies who are in need of funds which they may invest into their organization in the hopes of growing and adding more workers in the future.