Many men and women who have lost their job and have been unemployed for any substantial amount of time, are seeking new job opportunities, but there are far fewer new jobs being created than there are individuals seeking work. Despite the fact that new small business loan opportunities have become available from recent legislation, there is concern that access to SBA guaranteed loans may not provide job opportunities for the unemployed.
There have been numerous small businesses who have stated they cannot gain access to capital since banks have been tight with their small business lending practices. However, it’s hoped with the SBA guaranteeing a higher percentage of small business loans from certain lenders, more capital or credit can be accessed by small businesses, which could help with the growth of their company.
While no one is arguing that small businesses need access to capital in order to grow and expand their operations, there are those who feel that employment opportunities will not be quickly created simply because small business loan opportunities are available from lenders who are working with guaranteed SBA loans. There have been some financial institutions accused of not making loans who have said that businesses are simply unwilling to borrow at the present time.
Also, there is evidence to suggest that companies who may need funding from small business loans might still be unable or unwilling to add new workers after they have acquired this debt. Despite the fact that tax credits are available to companies who hire new workers, many feel that these small business loan opportunities may take time before they assist in the creation of jobs.
Again, businesses who need equipment, want to open new offices, or simply need capital for various reasons when it comes to handling more clientele, will typically need more workers in the future. However, those who may have been opposed to this legislation which has allowed the SBA to guarantee a higher percentage of small business loans overlook the fact that there are some companies that can immediately hire workers if given access to capital.
While small business lending can be a somewhat debated topic, it’s hoped that with access to funds through SBA small business loans and the HIRE tax credit still available, companies will not only have the means to grow their company, but may also employ new workers at less cost at the present time.