There are reports that small businesses are finding more lending opportunities and, as a result, were able to obtain the small business loans they have needed to reinvest in their company and begin the process of growing their business operation. Last year lending was of thought to be constrained due to concern on the part of lenders, but recent reports have not only shown him that these business owners may have a better options at finding small business financing opportunities from various banks and credit agencies, but the confidence in the small business sector is beginning to approve.
However, there are questions as to whether small business hiring will pick up as unemployment remains dreadfully high and the cause of a great deal of economic and financial hardships in the lives of many individuals and various areas of the economy. Yet, a recent report on CNBC.com stated that confidence in the small business sector has risen to its highest level since December 2007.
Yet, there are also indications that many lenders are positive about future credit opportunities and according to an article on Marketwatch.com, more banks are expecting lending to improve for large commercial loans and loans to smaller firms in 2011. Also, surveys have shown that there is an increase in demand for commercial loans, and thanks to banks easing their lending practices and opportunities for loans from programs like those from the SBA, it’s thought more companies may find the capital their business needs in the coming months.
When it comes to hiring though, many feel that businesses are going to be slow in this area in some instances despite the fact the companies are reporting more employees being added to their workforce. Hiring reports on February 4th stated that nonfarm payrolls grew by 36,000 in January, which is a positive in that there are jobs being added, but not at a rate to put much of a dent in the unemployment rate.
However, as access to credit for businesses becomes more available, it’s hoped that more companies will being using these funds from small business loans to improve their company, market to more consumers, and hopefully hire additional workers in the coming months. There are concerns by some businesses related to sales and this could be the reason some companies are slow to hire more workers. Yet, since small businesses have called for more borrowing opportunities so they may become more profitable, and these businesses are vital for combating unemployment, it’s hoped these small gains in employment will being to increase in the coming months and start the process of getting the unemployed back to work.