Micro-loan opportunities for small businesses can come from various sources, but one of the most common lenders of these short-term loans to small businesses is the Small Business Administration. While there are other lenders who may offer micro-loans, many business owners turn to SBA micro-loans because they can offer assistance to businesses which can help them make the most of the funding they receive from these lending opportunities.
Obviously, access to credit for businesses and some consumers is said to be tight, which many feel is one of the main reasons for the slow economic recovery which is being seen at the present time. However, some businesses have been able to gain access to funding from small business loans, but there is concern that if these businesses do not implement these lines of credit properly, they may end up defaulting as a result.
While micro-loans, like the Micro-Loan Program from the SBA, do offer funds that may help a business purchase equipment or supplies, they do not necessarily guarantee that a company will be successful when it comes to expanding or simply becoming more profitable.
Yet, the SBA requires that borrowers of these micro-loans receive business training or technical assistance, which will obviously help them when it comes to implementing their business strategy and making the most of their micro-loan. Again, many small businesses that may not need the sizable loan amount which comes from a traditional small business loan have turned to these micro-loan programs, but they are not a sure thing when it comes to making a business profitable.
For this reason, many feel that this business training and assistance offered when a company seeks a micro-loan from the SBA has been beneficial as, even if a company struggles or fails, the business owner will have had the tools necessary to implement their funding and business strategy as best as they could. While even these type of loans may be difficult for some businesses, companies that have needed no more than $35,000, which is the maximum amount from the SBA, have benefited from these lending opportunities, but financial advisers suggest that business owners heavily research their business strategy and review their financial position before seeking these micro-loan borrowing options.