Small business loans can be made available through various lenders and come in different forms, but there are opportunities for small businesses to gain access to loans from credit unions, as these institutions are fighting to become a bigger player in small business lending. Yet, one of the problems that credit unions have faced in the past is that they are limited to the amount of their resources which can be devoted to small business lending, which obviously hinders the overall number of businesses they may be able to help find funding.
However, as many financial institutions were accused of tightening their lending practices to small businesses, options from the SBA did help some as reasons behind tight lending practices on the part of many financial institutions was simply traced back to concern over the ability of companies to repay their debts. Yet, there have been businesses who have turned to credit unions as a way to access capital since these institutions are seen as more focused on customers than profits.
Obviously, getting a small business loan from a credit union is no guarantee, but there have been reports that credit unions feel that their hands are tied when it comes to small business lending and there is opposition from major financial institutions in some cases. However, there are those who feel benefits from small business lending from credit unions can also extend beyond simply acquiring funding for a small business, as credit unions may be more willing to offer assistance if a small business owner has particular needs or troubles which must be addressed.
While small business loans have been a concern for many, as small business employers are being looked to for the creation of jobs, there is hope that with new SBA lending programs which are hoped to address small business needs in underserved communities or offer borrowing opportunities for companies who may need a smaller small business loan amount than other large businesses, it’s hoped that companies will be able to gain more access to capital in the coming months.
Yet, for some companies who have been denied small business loan borrowing opportunities from major financial institutions, credit unions are also seen as a viable lender, as well as some community banks. However, despite the fact that many feel credit unions, if they were allowed to lend more to small businesses, could be an asset, but there is still the factor that some businesses simply are not in a position to borrow at the present time or may not be able to qualify for a small business loan, no matter the lender.