Businesses that may consider getting a small business loan for the purposes of hiring in the summer of 2011 may still have continued options available from a variety of programs, as well as, lenders in their area but there are questions as to whether businesses will in fact employ more workers this summer, even though there are indications that the private sector has been adding more employment opportunities over the past months. Jobless claims have been up and down in some cases, but unemployment remains relatively high in spite of some predictions that the job market may turn around in the latter part of 2011. Yet, these jobs obviously necessary for recovery in the employment sector will have to come from small businesses, by and large, so questions as to whether small business loans are available or helpful is currently one of the issues that these companies are facing as we get nearer to the summer months.
Soon after the recession and even to this day, there are questions as to whether access to credit for small businesses is more necessary and should be a priority for many lenders when it comes to the ability of small businesses to add employment opportunities. Obviously, students who are graduating college are looking for more full-time options, but numerous high school and college students often turn to summer job opportunities or internships as a way to save money for the fall and spring semesters, yet there are still concerns that these jobs could be harder to find this summer.
While April showed that private companies only added about 179,000 jobs, there was an increase in initial jobless claims in late May, which has given some a great deal of confusion as to where our job market stands. However, if businesses are in fact planning to hire more workers in the summer, small business loans can be used as a way to, ideally, help pay these employees so that more businesses could potentially profit from an increased workforce, even if it’s just for a short time.
As an example, microloans or new initiatives from the SBA that have been in place over the past months are hoped to either allow businesses to gain access to these loans more quickly, or in underserved areas, but options like a microloan can offer a business a smaller borrowing option which could be used to pay employees during the summer and purchase merchandise which could come in handy if a particular business is tourist-driven. Understandably, small business loans will not be helpful for every company but in cases where business owners feel they can invest in their company, hire temporary workers over the summer, and potentially see profits as a result, but there are still these borrowing options from major lenders, the SBA, but also community banks and credit unions as well.
Businesses must take caution, though, as there are still questions over whether consumers will travel or vacation much this summer if gas prices don’t decrease more, even though there are reports from resources like AAA who have said that there are still many consumers who plan to travel this summer or take a traditional vacation. In the end, borrowing for some maybe helpful, but acquiring debt might not be optimal for businesses this summer, especially if additional workers are not needed or can be brought on board without the need of financial assistance.