Small Business Loans And Lending From Banks And The SBA–Do Businesses Need More Options For Eligibility?

Small business loans from either traditional banks or in association with SBA lending programs have been the more common methods that many small companies have used to either further their business endeavors or get started in the hopes of finding either the capital needed to invest in their company and get started on the right foot or, in the case of established companies, reinvest in themselves so that further success may be seen. However, there were issues when it came to small businesses having the small business loan funds available or the eligibility requirements to obtain a traditional small business loan from a bank, but during tough economic times, many of these businesses felt that an SBA loan was their only option.

Yet, there have been indications that more traditional banks, as well as, smaller financial institutions and credit unions, are beginning to provide more options for these businesses and allow for looser eligibility requirements for companies seeking capital or financing. However, the Small Business Administration recently launched programs to streamline the small business loan application process and provide funding for businesses in communities that may be underserved. While these Small Business Loan Advantage programs are hoped to offer more funding to companies, as well as, traditional small business loans are becoming more easily available, there are still efforts from both the SBA and Treasury Department to open up the eligibility that businesses may have when it comes to acquiring small business financing.

While there were recent proposals from the SBA that would increase size standards applied to certain businesses, which may lead to additional firms being eligible for SBA programs, the Treasury Department has also hosted events that have created opportunities for small businesses, investors, and officials to dialogue about what companies need in terms of access to capital and opportunities to further grow their companies.

There are, obviously, many businesses who can benefit from small business loans, as many of these companies who are established may be in a position to acquire more inventory, personnel, or equipment that could help further their business due to increased demands in their business area but there are also many companies that would like to see further tax credits to help lower the costs of operation.

While there have been issues over eligibility requirements that may have kept lenders from making small business loans available to more companies, there are indications that these practices are becoming less constrained in and as a result more businesses may be able to find the financing they need to further their company. Also, options from the SBA may provide small business loan opportunities as well, but there are also resources that can be used by small business owners that will go beyond simple financing and could help a company become more successful with the aid of a small business advisor and guidance from SBA programs.

Hopefully, more small businesses in need of financing will not only have opportunities from SBA programs but from traditional lenders and even smaller financial institutions or credit unions in the coming months as there seems to be less concern on the part of banks when it comes to lending to certain businesses. While not all companies may have access to capital, there are reportedly more options now available in the area of small business loans that could be helpful not only to a particular company, but these businesses are being called on to help combat problems like unemployment and, in some cases, financing may be necessary for a business to grow in such a way where they will be able to add additional members to their workforce.