Small business loans had been sought out across the nation by a variety of organizations in various industries, but with specific areas like Connecticut, Missouri, and Vermont, new federal small business lending programs may be able to offer more capital to companies in these states, with the hopes of bringing about new jobs in 2011. While there have been new programs by federal initiatives like the SBA’s Loan Advantage Program, the State Small Business Credit Initiative recently approved funds can offer more access to capital for small businesses as they work alongside private lenders so that more small businesses may be able to receive the credit they need.
According to the Department of the Treasury’s press release these funds will, “help small businesses access the capital they need to expand their operations, create new jobs, and continue supporting our nation’s economic recovery.” Previously, these funds were made available to California, Michigan, and North Carolina but it’s expected that these small business loan initiatives will bring at least $133 million to Connecticut, $269 million to Missouri, and $132 million to Vermont.
While, again, the State Small Business Credit Initiative works alongside private lenders to help companies find more capital to improve their business, there are alternative resources which business owners may be able to use as a way to access credit for their company if a traditional small business loan or access to credit from federal initiatives are unhelpful. Again, funds are being generated from the SSBCI and the SBA, but there are reports that some major lenders are beginning to offer more traditional loans to businesses and credit unions are attempting to make a bigger impact in the area of small business lending, which could offer more options for consumers in need of business financing.
Yet, companies who are having trouble getting access to small business capital may be able to seek outside investors, like venture capitalists or angel investments, as a way to raise not only money for their startup or to further their business enterprise, but many of these investments will come with guidance from investors who, in many cases, may have experience in not only the business world but particular business areas in which they invest.
Understandably, businesses are being called on to create new jobs that are needed to combat high levels of unemployment that have been previously seen over the past months, and years, but complaints that there have been a lack of capital and access to small business credit have, in the opinion of many, stifled small business growth. However, it’s hoped that with more federal initiatives, coupled with private lenders offering more small business loans, SBA loans, and even business credit cards, more small business owners will be able to find the capital they seek in order to reinvest in their company or simply grow their operations in the hopes of becoming more profitable.