Business loans have continued to be a topic of discussion even here in June, as last week brought about meetings concerning SBA programs that may be more efficiently implemented or some areas which may be cut in the hopes of creating a better environment for businesses who are looking to borrow in the hopes of creating jobs in the future. Obviously, areas like manufacturing are one of the focuses of officials who are looking to create new jobs, but business loans available to small companies or underserved communities are also being focused on as there is hope that if these companies can gain the financial backing they need, this can lead to growth and more prosperity and terms of economic recovery.
Many programs within the SBA which have been tailored to help companies are well known as months ago the Small Business Loan Advantage and Community Advantage programs were implemented as a way to help companies more easily find the funding they need to prosper, particularly at a time where many financial institutions may have been hesitant to lend. Also, as a result of legislation which was passed, the SBA was able to increase limits on some of their loans, but in the arena of lending also saw other participants who stated they were still in the game and wanted to be part of small business growth by allowing financing to be made more available.
There were, earlier in 2011 and even in late 2010, credit unions who felt that if they were allowed to take a bigger stake in the small business lending market, they could do a great deal of good in terms of giving access to businesses. Some companies have even turned to small community banks and credit unions as a way to find the loans that they seek due to the fact that some major financial institutions may have denied them access to the funds they needed to grow because of their size or history.
While major banks like Wells Fargo, Bank of America and J.P. Morgan Chase reportedly have seen success in terms of making small business loans available, some companies and business owners have opted to either find assistance from the SBA or smaller financial institutions, as they feel more one on one relationships and the business advice that may be gained from these lenders could be more helpful in keeping their business afloat and, ultimately, bringing success that will require more job creation.
Some businesses are of the mind that borrowing at the present time can be a very risky maneuver and are turning to options like investors as a way to find the financing they need, once again, in the hopes of obviously becoming more profitable and opening more job opportunities in the future. Business owners who are currently looking for loans may have options not only from the SBA but from certain banks, however it’s sure that problems like housing and other anchors on economic improvement that are currently being seen could be drastically reduced if more jobs are created and those who have been long-term unemployed are once again able to find the income that would allow them to meet their necessary financial obligations.