Small businesses have had a difficult time as of late as economic problems and unemployment have created a slowdown in consumer activity. Yet, there are small companies who say they can benefit from small business loans, but many financial institutions have been unwilling to provide access to capital or credit over the past months.
Businesses claim they can create jobs, in some cases, if small business loans are granted, but these statements have been met with skepticism from some business analysts. Despite the fact that small business loans guaranteed by the SBA have been funded so that a higher percentage may be guaranteed at the present time, there are those who say that companies will be unwilling to create job opportunities after acquiring debt.
There are some cases where a company may be able to use funds from a small business loan to hire more workers so that a greater number of clientele or projects may be handled, but there is also concern over the ability of businesses to repay these loans. Banks which were accused of tightening their lending practices have stated that companies were unwilling to borrow in many cases because of this fear of being unable to repay.
Yet, many banks say that they are willing and preparing to help many small businesses through either SBA loans or traditional small business loans, and financial institutions like Bank of America have stated they are planning to hire more small business bankers in order to make more loans to companies who are seeking to expand and grow their operations.
Small businesses have been looked to in order to create job opportunities, but again, there are those who feel most companies are either unable to hire at the present time or will be unwilling to add additional members to their workforce after acquiring a small business loan. Yet, it’s hoped that these small businesses which are in need of small business loan capital will more easily be able to find lending opportunities, in the hopes these companies can become more prosperous and add workers in the near future.