Conflicting reports over small business loans have led many to ask whether small businesses need easier access to capital, which can be used to grow a company and create job opportunities, or if companies have simply been unwilling or unqualified to borrow money from financial institutions. There are outcries from small businesses who say that lending practices on the part of many financial institutions have been constricted, while banks often point out that numerous businesses have been hesitant to borrow.
While standard lending opportunities from the SBA had been available throughout the year, there are also some businesses who say traditional small business loans have been unavailable. Companies have argued that in cases where they need funding to expand their operations or hire new workers, lending opportunities have not been available.
Yet, many financial institutions have argued that, not only do small business loans typically not create job opportunities, as businesses are usually hesitant to hire once they have acquired debt, some companies have simply been unable to qualify for small business loans. Understandably, many small businesses have had difficulty, concerning their finances, over the past months as consumer spending and overall economic conditions have been weak.
However, banks also point out the fact that some companies are simply unwilling to acquire debt at the present time since the economy and job market have created an environment where these companies may not generate the revenue needed to repay these loans.
There are, on the other hand, reports that small business lending opportunities may be available through community banks or credit unions, if business owners are unable to take advantage of SBA loans. While the Small Business Administration has worked with smaller financial institutions to create learning opportunities and reports indicate that some banks, like Bank of America, are hiring more small business bankers, there is hope that the opportunity for businesses who are unable to get a line of credit at the present time will improve.
Obviously, opportunities for tax credits when hiring new workers have been set in place to aid job creation, but there are those who feel that more steps need to be taken outside of tax credits or small business loans concerning job opportunities for the unemployed. While there are indications that some companies in the private sector do continue to add jobs and have large levels of cash on hand, which could be used to hire more workers, some companies may be waiting until after the holiday season to either begin hiring new workers or retaining seasonal employees for a longer-term.
Yet, businesses that are seeking loan opportunities are often advised to talk with a variety of lenders if they are having trouble getting access to a small business loan. Obviously, business debt should not be acquired without a company being in a position to repay, but many feel that lending practices for small business opportunities will soon begin to become more available if the economy continues on an upward trend.