More options may be available in May of 2011 for small businesses, as it was reported a few weeks ago that opportunities like those from the SBA have been made more available in certain areas since new loan programs are coming into effect which could help small businesses in underserved communities. Yet, there are some business owners who may be attempting to gain financing as we near the summer months in the hopes of increasing their business during times when tourism may be high and potential customers could be in their area.
What some businesses may look to do as we near the conclusion of spring and enter into a time where individuals and families are attempting to simply get away and take a vacation is to find funding that will allow them to purchase stock or inventory, depending on the type of business area they happen to be in. Often, companies who are looking for a small business loan option will use this money as working capital, a way to purchase equipment that may help them become more successful, or there are instances where inventory for a business, like a startup, may be needed so that businesses can begin simply selling a particular product or even service.
While recent announcements from the SBA have indicated that the Community Advantage Program is beginning to gain more steam in areas like California and Texas, among others, there are still traditional options that some businesses may be able to use and even microloan financing that could help these companies that may only need a small amount of capital to carry them through the summer months. Ideally, plans like the Small Loan Advantage Program from the SBA will make capital more available to communities in underserved areas or where their economy has been particularly hard hit, but it’s also hoped to make applications go much smoother and faster for these companies looking to borrow.
Ideally, one of these businesses may be able use either an SBA loan or financing from a traditional lender, at the present time, to prepare themselves for an opportunity when more consumers may be in their area or there are simply some who are looking to take advantage of these options and begin a business with little emphasis on catering to tourists or for funding needed related to buying inventory. While the reasoning behind a small businesses loan will vary from one company to another, businesses that are just starting out or who may be in a position where a loan could help them become more prosperous in coming months do have options from not only traditional lenders and SBA programs, but smaller financial institutions and credit unions could help these companies as well.
Particularly, if a business is in an area where tourism will be high in the coming months, a business owner may want to compare options from traditional loan sources with those available from a small, community bank as business advisers from these types of financial institutions could give a business more insight into how they may better use funding they have received from a loan to become more prosperous in the summer months.