The Small Business Administration’s loan programs that have made borrowing opportunities available for small businesses continue to offer various financing options for companies in need of funding to continue their operations, grow their business, and ultimately become more profitable in the long run. Obviously, the SBA has been charged with helping small companies find the funds they need and borrowing opportunities that are vital for the sustainability of their business in the hopes that more employment opportunities can be created so that high levels of joblessness across the nation will begin to decrease as more jobs become available through small businesses.
While there have been options for small businesses to acquire different types of loans, there are more initiatives being set forth by the SBA to provide funding to underserved communities where access to small business capital may be hard to come by. On February 15, new small business programs from the SBA were implemented through the Small Loan Advantage and Community Advantage plans in the hopes of bringing more funding to companies in underserved areas and streamlining small business loan processes to companies that could greatly benefit from this funding but may have had difficulties over the past months as traditional small business loans have been difficult to acquire.
The SBA is hoped to implement these programs over the coming months and, along with other options, like the SBA micro-loan program, it’s hoped that more companies who will have been seeking small business funds to prosper and grow will have the opportunity through these programs if a traditional small business loan from a bank or credit union may be unavailable. Last year many businesses complained that banks were simply unwilling to make loans available to the majority of businesses, despite the fact that many financial institutions stated that the small businesses were unwilling to borrow in the majority of cases.
However, more business owners are now looking for small business loan opportunities and, through these SBA programs, it’s hoped that alternative forms of small business borrowing can be made available if a particular business has had difficulty dealing with a bank concerning a traditional small business loan line of credit. While, again, options like the small business micro-loan program from the SBA may be able to offer small companies or startups the funds they need to buy equipment, inventory, or simply use as working capital, these new SBA programs from the SBA Advantage initiative are believed to set the stage so that businesses that can borrow and are willing to acquire debt at the present time will have the option of doing so in order to reinvest in their company.
There have been concerns that recent proposals for budget cutbacks from the federal government may eliminate some SBA programs, but officials at the Small Business Administration have stated that, while they are looking for ways to cut costs and eliminate waste, their main priority continues to be looking out for interests of small business owners and provide them the means that are necessary to continue to prosper so that they can more positively contribute to the overall economy.