A small business loan borrowing options from major banks have been seeing mixed results over the past months as 2010 saw a time where many companies were having trouble getting access to financial opportunities through loans as many major banks were closing the books on small business lending, but recent indications have shown that there have been increases in the number of lending opportunities that small businesses may take advantage of, and have used during the past few months.
Obviously, new initiatives like the SBA Loan Advantage program are hoped to offer opportunities in underserved communities or more a streamlined application process for businesses who are only looking to borrow less than $250,000 for their business, but there are indications that major banks like Chase, Wells Fargo, and Bank of America saw increases in their small business lending in 2010, which is hoped to continue for the remainder of 2011.
A recent report on BusinessWeek.com stated that Wells Fargo had lent 14.9 billion and small business loans, Chase had made $10 billion available to small businesses, while Bank of America offered $92 billion in small business lending funds during 2010. During a time where many felt that banks were simply not lending, these three institutions, among others, did see increases in the total percentage of lending they saw throughout 2010, but questions as to whether lending will continue in 2011 remains to be seen.
Yet, there are indications that more businesses are beginning to seek out loans as one of the factors that was said to be attributed to low small business loan numbers was the fact that businesses were simply not looking to borrow. While there are some companies who were in need of financing that said they had trouble getting a loan, there were many officials in the financial industry who stated that many businesses were still struggling to recover from the recession or uncertain about the future and were simply not in a position where they want to acquire debt at the present time.
With new lending initiatives from the SBA and various state-specific small business programs, there are also some indications that major financial institutions are starting to feel more comfortable lending as businesses are beginning to look for access to capital which can be used to invest in their company, but advisers also suggest that small businesses not simply look at major financial institutions when seeking out small business financing.
Understandably, major banks are one of the first resources that small businesses use when they are in need of a loan or access to capital, but there are also some reports that have shown access to credit and small business loans through community banks or credit unions have been an alternative option that these business owners may use if they find traditional small business loans from major financial institutions are unavailable. However, as more programs are being implemented to help small businesses grow and hopefully add more jobs this year, many analysts feel that companies who are in a position to acquire a small business loan will have the opportunities to do so through various institutions and small business lending programs.