Small businesses may be able to take advantage of a new lending program from the Small Business Administration in 2011 thanks to the introduction of new programs which are hoped to help more small businesses and underserved communities create business opportunities. The Small Loan Advantage and Community Advantage programs are hoped to increase the number of small business loan opportunities, through programs like the 7(a) loan initiative, which can help businesses who are in need of smaller business loans.
Typically, these loans are hoped to offer businesses up to $250,000 and will be guaranteed by the SBA, which is believed to offer more opportunities for borrowers and incentives to lenders. However, business owners have often been confused over how they can access SBA loans, despite there being directions to applying on the SBA’s website. While there are SBA loan opportunities available, there have still been some complaints from business owners related to the lending practices of many financial institutions.
There have been businesses who have claimed they were simply unable to find a lender in order to gain the access to capital they needed for their company, but it’s been reported that these new SBA initiatives in 2011 will be offered from a variety of lenders within the Preferred Lender Program and there may be some community organizations, like community development companies or micro-lending institutions that may offer opportunities for businesses to gain access to the funds they need.
While there are still traditional small business loan opportunities outside of the SBA, as many businesses across the nation will need larger business loans in some instances, it’s hope that these smaller amounts will be accessible and used by companies for not only job creation but community development as well. There are mixed feelings on small business loans as many feel that companies, in general, are not on a stable ground and the economy has not recovered to a level that will allow for the repayment of these debts but there are also many business owners who are in desperate need of capital so that they can grow their company and, hopefully, become more successful thanks to that investment.
While there may be some financial institutions who are still hesitant to lend, it’s hope that this new lending initiative by the SBA will provide options for smaller businesses and underserved communities to not only stabilize current businesses but bring entrepreneurial ideas into the real world thanks to funding opportunities from these loan programs.