It was reported that, for the month of September, small business lending increased, which may point to positive signs for not only the business sector, but potential of opportunities as well. Small business loans have been reportedly difficult to obtain by many companies, but financial institutions have countered stating that small businesses have simply been unwilling to acquire debt at the present time.
Arguments have been made that, when it comes to job creation, small businesses must have access to small business lending opportunities and lines of credit which will allow them to grow and expand their business. Numerous companies have been in need of access to capital for expenses like equipment or to simply grow their areas of operation, which would obviously necessitate the need for more workers in the future.
Funding for small businesses which will allow them to handle a higher number of projects or clients will, in the majority of cases, lead to the hiring of new employees, which is something that is greatly needed at a time when the job market is very unfavorable.
Yet, many companies stated, even with the SBA guaranteeing a higher percentage on certain small business loans, many banks simply did not want to release capital to small businesses. Again, these banks stated that either businesses were unqualified for a small business loan or were simply not looking.
However, this increase in small business loan acquisitions either points to the willingness on the part of companies to borrow or banks loosening their lending practices, both of which may be a positive for the job market in the future. While not every company may qualify for a small business loan, reports that more access to small business capital have many feeling that despite a slow recovery in the economy, this is a positive sign when it comes to not only business growth but combating the unemployment problem down the road.