Small business loans have been a priority for many business owners over the past months as concerns over restricted access to capital have been present and, for some companies, their ability to grow and expand may have been hindered due to lack of funds available. However, North Carolina has recently received assistance from federal funds to help small business loan opportunities become more available so that borrowing options for businesses in 2011 may become more accessible to companies in need and could help with the state’s economy.
There are states which may benefit from similar funds as a small business assistance allocated to North Carolina for small business loans is part of the federal Jobs Act, which is hoped to offer the infusion of capital into small businesses with the hope that more jobs will be created in 2011. Understandably, unemployment is still a major hindrance in the recovery of not only state economies but the overall, national economy as well, and small businesses are being looked to when it comes to providing the jobs which many men and women have been seeking for quite some time.
Obviously, small businesses who have not been able to access capital are in a situation where they cannot hire more workers as there are no ways which they can invest in their company without access to credit or small business loans. Understandably, there are arguments that small business loans do not create jobs immediately, but when it comes to growing a business and creating an environment where more employees are needed, there are few who would argue that small business loans are unhelpful.
There are some new initiatives which may be helpful from the SBA in 2011 as small business loans are hoped to become more available to underserved communities or companies who may need a smaller amount in their small business loan, but there is question as to whether businesses will borrow at the present time even if opportunities are available.
While some business owners have stated they would love the opportunity to acquire a small business loan, there is some concern that businesses may be unwilling to take on debt at the present time since the economy is slow due to factors like unemployment and home loan difficulties. However, analysts feel that when companies begin investing in their own organization, expanding into new areas and markets, and hiring more workers, this will obviously help increase consumer confidence and simply provide unemployed men and women with jobs which will allow them to begin putting more capital back into the economy.