SBA Small Business Loans May Grant Access To More Capital And Credit–Will Businesses Borrow?

Small business lending opportunities from the Small Business Administration are reportedly said to be more available at the present time thanks to recent legislation which provided more funding in the hopes of bringing capital to small businesses in need of credit.

Small businesses have been looked to for job creation that is needed in our nation, but business owners have argued that there is a lack of access to capital available for those who may be able to expand their operations. There are arguments that companies will be unwilling to hire workers even if small business loans are available, as most companies will not acquire debt and then employ new workers.

However, the reason many believe funding was provided so that SBA loans could be made and guarantee a higher percentage of these business loans is because companies need opportunities to expand and become more profitable, so that hiring will then be necessary. Yet, there are also companies who claim they can immediately hire more workers if capital is made available through small business loans, as additional funding could allow them to handle a higher number of clients or projects.

Popular tax breaks for business owners who hire new employees are said to be more effective than small business loans, as some companies may be unwilling to borrow at the present time. Lenders who were accused of not making small business loans available simply because a higher percentage on SBA loans could not be guaranteed, stated that businesses were simply unwilling to take on debt at the present time, and as a result, it simply seemed that banks were not willing to lend.

Yet, despite the fact that some feel small business loans are not a solution when it comes to creating job opportunities, there are many financial analysts who feel that businesses must have access to capital, through lending opportunities like SBA loans, before any success can be seen down the road. There are tax credits which are available at the present time for companies that hire new workers, but it’s hoped that with the SBA being able to guarantee a higher percentage of business loans, lending opportunities will be more available to companies in need.