The small business loans that are offered and guaranteed by the SBA have been a valuable asset for many companies who may have had trouble finding financing for small business, and there are recent reports that indicate a new online option may help more businesses find borrowing opportunities if they feel that an SBA guaranteed loan is the best option for their particular situation. While there are reports that also indicate many major financial institutions and smaller banks or credit unions have also opened up options for borrowers, despite the fact that credit may have been difficult to acquire over the past months, there are still some businesses who may need to turn to plans that may be specifically offered through SBA programs.
Again, major banks like Wells Fargo, J.P. Morgan Chase, and Bank of America do still lend a great deal to small businesses, and as many of these financial institutions are seeing businesses find more stability, there are options for businesses to simply acquire a traditional small business loan rather than seek out an SBA guaranteed option. There are, as well, some businesses who are bypassing loans altogether and looking for private financing, like that which is offered through angel investment organizations, however, there are still some companies that have been able to benefit from SBA loans.
According to the SBA website, this new online tool is hoped to strengthen “SBA collaboration with its lending partners, making it easier for them to identify the points of contact, loan programs and financing options that will best expand access to capital for local businesses.” While the SBA has recently launched new programs from the Loan Advantage initiative, this new “Lender Toolkit” is hope to benefit businesses by helping various lenders either find a loan option and forms that may be helpful to a particular company, answer frequently asked questions that may arise about these SBA programs, and there are features of this new SBA online resource that may help entrepreneurs find more information about beginning or growing their business.
One of the reasons that many companies seek out aid from the Small Business Administration is due to the fact that, aside from small business lending opportunities, the SBA can also provide assistance with not only beginning a company, but making the company more prosperous through various efforts, financial counseling, and general guidance that could aid particular businesses in certain markets.
While, in some cases, there are opportunities for small business loans from a credit union, for example, that may also offer benefits to small businesses as there are some financial institutions and borrowing opportunities outside of the SBA that can offer business counseling as well, it’s hope that this new online option will not only help streamline the lending process for SBA loans, but open more opportunities for businesses who are looking for startup capital or ways to simply improve their operations.