Small business loans are predicted to be more available in 2011 as banks pledge to offer borrowing opportunities to small businesses in the hopes of spurring economic recovery and small business growth. Obviously, small businesses have had various options in the past when it comes to borrowing a small business loan, as programs from the SBA, major lenders, or other sources of business financing have been available, but tight lending practices have led to many business owners feeling the pressure of attempting to further their business without access to capital or credit.
However, a BusinessWeek.com article stated that, “Loan demand is only beginning to recover from the downturn. Banks reported a net increase in demand from small businesses…in January for the first time since 2006.” While there have been options from smaller financial institutions, big banks like Bank of America, J.P. Morgan Chase, and Wells Fargo saw increases in their lending in 2010 and it’s predicted that more businesses may find access to these loans in the coming year as confidence returns and lending practices become less constrained.
Understandably, some small businesses have had difficulty when it comes to acquiring a small business loan but, some financial institutions, have stated that they will offer reviews of small business loans if a business owner feels they should qualify for financing but may have been denied. Also, companies may benefit from programs like the SBA Loan Advantage Program which is hoped to offer not only more financing opportunities in 2011 but particularly address issues in areas where funding may be limited or small businesses underserved.
While businesses who are seeking financing for their company may want to take stock of their situation if they are denied a small business loan, as they simply may not be in the financial position to handle debt at the present time, these positive forecasts are hoped to bring about change in the small business sector and offer companies who are able to borrow and ready to grow their organization the chance to find financing which can help achieve this goal.
Business owners have a wide range of options when it comes to acquiring a small business loan and, for this reason, may not want to simply settle with speaking to one financial institution. While many companies consult major banks that are well-established, there are also small business loan opportunities that have been accessed over the past weeks and months from community banks, regional banks, and even credit unions, so business owners may want to look at these different options when they are seeking small business loan financing.