Small businesses who happen to be looking for loans at the current time are still facing opposition when it comes to the availability of financing opportunities through banks. Obviously, there are some financial institutions that are still lending to small businesses but there are also complaints by many small business owners that the restricted lending practices which have reportedly been a problem for some small businesses are still in place. However, officials representing a variety of credit unions across the nation have been seeking permission to increase the amount they could loan to small businesses, and therefore make credit unions not only an alternative for small businesses looking for a loan but would allow these credit unions to have a bigger part in small business lending in general.
Currently, credit unions have a cap on the amount they can lend to small businesses as they are unable to lend beyond a certain percentage of their total assets, but some credit union officials have requested that this cap be increased, and in some cases they are requesting that the percentage they are able to lend, in terms of small business loans, related to their assets would be double from where it stands now. Yet, no matter what percentage of small business lending credit union may be able to participate in, there are those who feel that if small businesses had more opportunities they could potentially begin to see more success in terms of helping these businesses grow and aid in the overall economic recovery.
However, there are also some concerns which have arisen related to small business loans as their are some companies who are simply hesitant to borrow at the current time. While, once again, there are banks who are making loans to small businesses, many feel that only well-established or even larger companies are those who are getting these loans, but many officials also argue that small business owners are simply not in a position to take on debt currently.
Ideally, if credit unions are able to increase the amount they can lend to small businesses, it could potentially help those companies who are indeed looking for a small business loan but may have been denied by a major bank. While companies may be able to look at credit unions or even community banks in their area, some often give up the search for a small business loan after being denied by one of the major small business lenders in our nation, but business owners do need to remember that there are alternatives to small business loans from major banks.
Business owners who are looking for a loan can consult with a credit union in their area but there are also community or regional banks, as well as outside investors that may offer financing opportunities for these companies. In either case, the business would be able to get the financing they seek, but business owners may want to explore options for financing that go beyond loans as a financing from angel investors, as an example, can be one alternative to getting the funds that a business needs to grow and this could also bring about advice from the investor, who may have experience in business and help a business owner to make better use of the financing opportunity they are given.