Small Business Borrowing Options From Microloans And SBA Community Advantage Program

As reports show that more lenders are beginning to open up borrowing options for small businesses, alternative plans that may bring access to capital for small businesses through either microloans or the new SBA Community Advantage Program are offering more specific borrowing opportunities to businesses who may even need a small amount of capital to help their company or who are in an area that may be underserved when it comes to these borrowing opportunities. Many businesses have been seeking out specific opportunities to gain financing for their company, but in 2010 there were many complaints that banks were simply not making capital available or, if they were, they were requiring that business owners meet more stringent qualifications before borrowing.

While indications have also been positive over the past months that more major financial institutions are beginning to open up traditional small business lending avenues in order to bring in revenue for companies that could grow as a result of credit or capital through these lending options, the SBA has been working to provide assistance in specific areas as well, in the hopes of bringing more business owners into a position where they can further their company and reinvest in themselves in the hopes of gaining more prosperity.

Traditional programs from the SBA and other sources have often been able to offer microloans to small companies who may need only a small amount of capital or credit which can be used to get their company off the ground or as a way to simply purchase inventory and supplies, among other things, in the hopes of making their business more successful. Understandably, businesses will typically acquire a loan for a variety of reasons, but these microloans usually are offered to companies who only need a small amount of funding and it may benefit from counseling that can come from lenders who are participating in these microloan initiatives.

Microloans sought out by small companies or startups can also, again, lead to aid from resources that may help companies more intelligently use these funds to their advantage, but new programs like the SBA Community Advantage plan has set a maximum loan size of $250,000 which is aimed at helping lenders aid specific communities that may be underserved or are focused on building up an area that may have been hard hit by the recession.

While traditional SBA small business loans are still available, this particular Community Advantage Program is hoped to address the business needs of low income communities and new businesses. Obviously, the increase in opportunities to access capital for small businesses in these areas are one goal of the program, but there are also initiatives that are hoped to provide management and technical assistance to these businesses and, essentially, help them make better use of loans they may receive as part of the Community Advantage Program.

Again, traditional small business loans and lending in general is said to be slowly improving and offering more access to a variety of borrowers, but the specific efforts from the SBA through either a microloan opportunity or the new Community Advantage Program are a few of the alternative options business owners may be able to explore and use to not only benefit their business financially, but gain more understanding of how to implement these funds that will allow them to be more successful in their particular community or business area.