Mixed reports in the area of small business loans have indicated that more lending opportunities may be available through SBA loans, but there are accusations that some financial institutions are unwilling to lend. Also, banks have countered with the argument that small business loans are not being made due to the fact that businesses are simply unwilling to borrow.
Yet, there is an outcry for more access to credit to be given to small businesses as companies need these funds to grow and expand their operations, and hopefully create more job opportunities. It’s believed that by the SBA guaranteeing a higher percentage on certain small business loans, lenders may be more willing to make funds available to companies who can benefit from a loan.
However, there are arguments that state simple access to small business loans will not create the jobs that are needed at the present time. While there are banks, like smaller financial institutions or credit unions, which are reportedly offering small business lending opportunities, there is either a hesitation on the part of lenders to offer loans or businesses to borrow as many feel the economy is still uncertain.
On the other hand, there have been complaints from business owners who say they can hire more workers if they can only acquire funding through a small business loan at the present time. Hiring tax credits have been made available to employers who add additional workers, but the argument remains that companies who are in need of small business loans may not hire workers after acquiring debt.
While, again, there have been companies who say they will hire workers if given access to credit, there are more conservative opinions which state that companies who are given access to small business loans will not immediately be able to hire workers, but small business loans can help grow their operations, which will eventually necessitate hiring a larger workforce.
Increases from the SBA on their express loans and microloans are hoped to make funds available to companies which do have potential to hire workers down the road, even if they will not enter the workforce at the present time. It’s hoped that access to small business capital will, either presently or in the long-term, not only help companies to become more profitable but allow them to hire a greater number of workers, which is something that is greatly needed to combat the current unemployment rate.