A recent small business bill which was passed in Congress has allowed the opportunity for some business owners to obtain a small business loan which is guaranteed by the Small Business Administration. SBA loans are typically more accessible by business owners since they are guaranteed and, from the perspective of lenders, less risky since there is coverage in the case of a business owner defaulting.
While there have been many individuals who have said that their company is having trouble growing because a lack of access to credit, banks have also stated that some businesses have been hesitant to borrow in the present economy. There have been cries from numerous advisers and business owners that funding to small businesses through small business loans is vital for not only job creation but a business’s growth, yet, many banks were accused of being tight with their lending practices.
However, the new SBA small business loan opportunities, which can allow access to funds from business loans guaranteed by the SBA, are hoped to create an environment where companies can now begin reinvesting in themselves, thus allowing them to expand and add more employment opportunities.
Yet, there are those who feel that simple small business loan opportunities, even those that are guaranteed by the SBA, will not be enough to help businesses necessarily expand or add jobs. Arguments that small business loans are not good for job creation have come from some business analysts who say that a company is highly unlikely to hire new workers after they have taken on debt from loans.
On the other hand, those who were supportive of the new small business bill and funding to the SBA for the guarantee of a higher percentage of small business loans feel that with current tax credits in place for business owners who hire new workers and easier access to funding from small business loans, companies may now have a better opportunity to not only grow, but also, add more workers without incurring costs which would hinder their company.