The opportunities for businesses to acquire small business borrowing opportunities through traditional business loans in 2011 may be more available as there are not only new programs which are hoped to be implemented by the Small Business Administration, but there have been reports that some community lenders and smaller financial institutions are planning on offering more small business loans as well. Understandably, small businesses are being seen as one of the major tools which can be used to fight high levels of unemployment but over the past months there have been concerns as to the accessibility of funding from small business loans.
There are numerous financial institutions which make small business loans available, but restraints on the access to credit and capital have led many to feel that small business growth may have been hindered due to these tight lending practices, as there are those who argue that when funding from the Small Business Administration was made available to guarantee a higher percentage of small business loans, numerous business owners quickly drained these funds as they were thirsty for borrowing opportunities.
Yet, not only will the SBA be offering new programs to borrowers through the Loan Advantage program, which is hoped to offer a more streamlined method for businesses to acquire the capital they need, but also, it’s hoped that underserved communities will be able to have borrowing opportunities as well so that companies in these areas will be able to add jobs and contribute to their community.
There was also a recent report by Reuters which stated that, according to an industry study, over half of the Community Banks which were surveyed in the study plan to increase their commercial homes in the new year. Obviously, for businesses who are looking for ways to grow and expand, capital is needed as an investment so that either more equipment can be purchased, inventory or supplies can be acquired, or small business capital can be beneficial in numerous other areas that can allow for not only a business to prosper but hopefully require new workers in the near future.
Understandably, small business loans will not directly or instantly offer more jobs in many cases, but with small business loan opportunities increasing this obviously creates an environment where these companies can become more prosperous and thus need more workers as a result of increasing success in business. While many of the nation’s top financial institutions do still offer small business loans, it’s hoped that with these SBA initiatives and smaller financial institutions planning to offer more capital, small business borrowing opportunities will be more available in the coming months.