The Time is Right for Small Business Loans
Good news is here after several frustrating years of small business owners struggling to find loans to finance their dreams. If you’re ready to call it quits, don’t give up just yet. This might be the perfect time to finally get the money your small business needs.
Where should you begin the hunt for a loan? Start with the obvious. Huge national banks are increasing lending this year. The economy is recovering and everyone is feeling more optimistic. In April JP Morgan Chase, the current leader in SBA loaning, announced plans to boost loans to small businesses by 20% in 2011. Does your business need a piece of the $12 billion that JP Morgan Chase will be lending to small businesses this year? JP Morgan Chase and other huge nationwide banks are a promising place to start looking for your loan.
If a visit to a mega bank was futile, don’t feel down…think smaller. Go to a local bank and see if you can spark curiosity in your business. In September 2010 the Small Business Jobs Act passed legislation. This act provides a $30 billion Small Business Lending Fund to be distributed among qualified community banks. There may be a local bank benefiting from the Small Business Jobs Act that will love your business ideas.
Another loan option to pursue is credit unions. Although legislation currently limits the percentage of business loans in credit unions to 12.25%, they provide lower interest rates and are often easier to qualify for. In addition politicians are pushing a bill to increase the cap to 27.5%. It is estimated that a 27.5% cap would provide an extra $13 billion in small business loans.
The past few years have been disheartening for many small business owners and aspiring small business owners. Don’t let recent frustration cause you to resign your efforts now. You may be unbelievably close to getting the loan you need to open, maintain or expand your business. Legislation and a healthier economy have created an encouraging environment for lenders and borrowers.