Small Business Loans Through The SBA And Major Banks–Are Borrowing Opportunities Available For Companies?

While the foundation for many small businesses may seem uncertain, there are companies who are still seeking small business loans directly from banks or through sources like SBA-guaranteed loans from a variety of financial institutions. Small business capital is said to be greatly needed in order for companies to begin investing in themselves, growing their operations, and finding themselves in a position where additional workers are needed. Obviously, the focus has been on small businesses as of late due to unemployment, since private small business job opportunities are one of the main sources of employment in our nation.

Yet, mixed reports have come from the small business lending sector as there are companies that state lending practices by many financial institutions have tightened over the past months and borrowing opportunities may be limited. While there were previously small business loan opportunities from the SBA, as additional funding was provided so that a higher percentage of SBA-guaranteed loans could be made available, business owners still have stated that borrowing and access to credit has been unavailable.

There have been some financial institutions like J.P. Morgan Chase who reportedly have been using SBA loans to provide access to credit for small businesses. Particularly, Chase was reported to have doubled the amount loans they offered from the Small Business Administration in 2010. Yet, Wells Fargo is said to have taken first place as the biggest lender, in dollar amount, to have provided small business lending opportunities, but Chase was reported to be in the number one spot in terms of the number of loans.

Understandably, not all businesses may qualify for a traditional small business loan or an SBA loan from a financial institution, but many businesses are turning to smaller banks or even credit unions for borrowing needs, as again, many feel large financial institutions may not offer access to capital for a wide number of businesses. Despite the fact that banks like Wells Fargo and Chase, among others, have been offering borrowing opportunities, some businesses have benefited from dealing with local lenders rather than national banks.

There have also been opportunities for borrowing when businesses may only need a small amount of capital as plans like the SBA micro-loan program may offer borrowing opportunities for businesses whose need for capital does not exceed the maximum loan amount of $35,000.

While there are small business loans available, business owners have been made aware that access to capital is not always easy to come by, and for this reason various financial institutions may need to be consulted. However, companies are also being cautioned before acquiring debt as there is still uncertainty in the economy and, despite the fact small businesses are being called on to create jobs, there are cases where a small business loan may not be right for a company at the present time, even if access to credit is available.