It’s no secret that there are many officials and business owners who feel that access to capital through small business loans or other lines of credit will be key in helping restore the unemployment rate to an acceptable level, as many business owners have stated that they feel the inability to access credit, which can be used to do everything from start a new business to simply purchasing inventory, has been the problem when it comes to a business’s ability to grow, thrive, and ultimately add employees over the past years. Yet, this is still a debated issue in some circles, reports released earlier in June have a more optimistic outlook on the small business loan front for the second part of this year.
It’s true that banks are tightening certain lending standards, may be requiring more incentives from consumers or looking to lend in a more stable environment, but businesses in various areas of the nation require these loans as a way to get off the ground and running, but as access to loans has been tight in some cases, businesses feel that this could be leading to slower recovery in certain areas of the economy. There are those who have argued over the past days that the recovery of housing may lead the way to full economic recovery, since housing was largely to blame for our current state, but many disagree and feel that employment is the key to more stability.
Though, business loans are what many entrepreneurs or current business owners are focusing their attention on, as the ability to access capital from major financial institutions all the way down to small credit unions may be limited in some areas, yet there is hope that this year will start to finally bring about recovery in various areas. While housing, in the opinion of some, will may being to rebound in 2012, there are predictions that small business loans have seen, and may continue to see, improvement this year.
It’s been reported that in the first part of 2011, small businesses saw an increase in the overall percentage of approvals for small business loan requests, which is up from the same time last year, and if demand for small business loans continue, there are some who feel that even major financial institutions are in a position to begin offering these lines of credit. While there are countless lenders that businesses can turn to, some of the major banks like J.P. Morgan Chase recently announced that they plan to commit more funds to small business lending than they did last year, and this is quite a positive statement for small business owners looking to borrow.
Yet, small business loans will not always create jobs instantaneously but may only offer the capital injection that a business needs to start the process of becoming more profitable or successful over time, but no one can argue that if more businesses who can benefit from these loans are given access to small business financing, it can be a positive step in the direction that our country needs to make towards lowering the overall number of unemployed men and women who are currently seeking work.